Draw a supply and demand graph for new cars. Show the impact that the 2008-09 recession (with the decrease in consumer income) had on the market for cars. You can show this best by shifting one of the curves. What happens to the price and quantity of new cars?
Draw a
Demand is the quantity of a product or service that consumers are willing and able to buy at a given price over a specified period of time. The demand for a product or service increases as the price of the product decreases, and vice versa.
Supply, on the other hand, is the quantity of a product or service that producers are willing and able to sell at a given price over a specified period of time. The supply of a product or service increases as the price of the product increases and vice versa.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
