Market for manufacturing mercedes cars

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Consider the market for manufacturing Mercedes cars. Using a demand and supply diagram, illustrate the impact of the following economic events on the equilibrium price and quantity of manufacturing Mercedes cars. Assume ceteris paribus. Identify the condition of demand and supply and provide a brief explanation of the process of moving to the new equilibrium.

People are concerned about pollution and at the same time the government reduces indirect taxes on manufacturing Mercedes cars.

Reference no: EM132548605

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