Question

Demand Function
Assume that the income of consumers of cars increase, but the number of firms producing cars decrease. What do you think is going to happen in the market of cars? THINK PROPERLY, depending on how much you shift the curves, we can have three possibilities.
• Can you tell with certainty what is going to happen to the Price and what to the quantity. Draw at least three graphs to explain.

Answer 1

Explanation:

Your answer is in figure plzz look now.

Answer 2

Answer:

A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined. 1. For any quantity, consumers now place a lower value on the good, and producers are willing to accept a lower price; therefore, price will fall.

Explanation:

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