Question

2011, the US trucking industry faced the following economic conditions

1. The US economy was improving rapidly, recovering from a prolonged economic recession during which trucking had shrunk its capacity by 14% .

2. The government instituted new regulations imposing more frequent equipment inspections and restricting operators’ daily driving hours.

3. Year over year, diesel fuel prices were up by 9%.

For each of these, show the effect on the equilibrium price and quantity in the US trucking industry.​

Answer 1

Answer:

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