Consider the market for gas-powered small cars. Assume gas-powered small cars are a normal good. For each of the following events, identify which of the determinants of demand or supply are affected. If demand is unaffected by this event because it creates only a supply change, select the “None” option under the “Demand Determinant” column. Similarly, if supply is unaffected by this event because it creates only a demand change, select the “None” option under the “Supply Determinant” column. Event Demand Determinant Supply Determinant People decide to have more children. The price of electric small cars falls. The discovery of a new source of iron ore lowers steel prices. An economic recession lowers people’s wealth. A number of major car dealers decide to switch from selling gas-powered cars to selling electric cars. Show the effect of the following event on the market for gas-powered small cars: People decide to have more children. DemandSupplyPrice of Gas-powered Small CarsQuantity of Gas-powered Small CarsDemand Supply Show the effect of the following event on the market for gas-powered small cars: The price of electric small cars falls. DemandSupplyPrice of Gas-powered Small CarsQuantity of Gas-powered Small CarsDemand Supply Show the effect of the following event on the market for gas-powered small cars: The discovery of a new source of iron ore lowers steel prices. DemandSupplyPrice of Gas-powered Small CarsQuantity of Gas-powered Small CarsDemand Supply Show the effect of the following event on the market for gas-powered small cars: An economic recession lowers people’s wealth. DemandSupplyPrice of Gas-powered Small CarsQuantity of Gas-powered Small CarsDemand Supply Show the effect of the following event on the market for gas-powered

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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14. Determinants of Supply and Demand

Consider the market for gas-powered small cars. Assume gas-powered small cars are a normal good.

For each of the following events, identify which of the determinants of demand or supply are affected. If demand is unaffected by this event because it creates only a supply change, select the “None” option under the “Demand Determinant” column. Similarly, if supply is unaffected by this event because it creates only a demand change, select the “None” option under the “Supply Determinant” column.

Event	Demand Determinant	Supply Determinant
People decide to have more children.
The price of electric small cars falls.
The discovery of a new source of iron ore lowers steel prices.
An economic recession lowers people’s wealth.
A number of major car dealers decide to switch from selling gas-powered cars to selling electric cars.

Show the effect of the following event on the market for gas-powered small cars: People decide to have more children.

DemandSupplyPrice of Gas-powered Small CarsQuantity of Gas-powered Small CarsDemand Supply

Show the effect of the following event on the market for gas-powered small cars: The price of electric small cars falls.

DemandSupplyPrice of Gas-powered Small CarsQuantity of Gas-powered Small CarsDemand Supply

Show the effect of the following event on the market for gas-powered small cars: The discovery of a new source of iron ore lowers steel prices.

DemandSupplyPrice of Gas-powered Small CarsQuantity of Gas-powered Small CarsDemand Supply

Show the effect of the following event on the market for gas-powered small cars: An economic recession lowers people’s wealth.

DemandSupplyPrice of Gas-powered Small CarsQuantity of Gas-powered Small CarsDemand Supply

Show the effect of the following event on the market for gas-powered

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