How do things change based on the following scenario The mar

How do things change based on the following scenario? The market for hybrid cars is changing. There are more providers but due to bad publicity and poor performance, demand is falling.

Knowing this information, answer the following questions and then show the corresponding information in your graph:

What is the market you are dealing with?

Which curve(s) change(s)? Based on the lists in the text of what causes demand and supply to shift, what are the causes of these shifts?

In what direction do they change?

What happens to the equilibrium price and quantity after these changes are put into effect? Do they go up, go down, or stay the same?

P: _______________________                Q: _______________________

Solution

1. The market you dealing with is Hybrid Car.

2. The number of firms in the industry causes quantity to go up, while a change in the consumers taste and preferences cause demand to go down.

3. Demand curve shifts left

4. P: go down              Q: go down