The price of SUVs, a substitute-in-production for sedans, has increased over the last year. Show the effect of this event on the market for sedans by shifting the appropriate curve in the graph shown. What is the new price? $ What is the new quantity? thousand million

The price of SUVs, a substitute-in-production for sedans, has increased over the last year. Show the effect of this event on the market for sedans by shifting the appropriate curve in the graph shown. What is the new price? $ What is the new quantity? thousand million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The price of SUVs, a substitute-in-production for sedans, has
increased over the last year. Show the effect of this event on
the market for sedans by shifting the appropriate curve in the
graph shown.
What is the new price? $
What is the new quantity?
thousand
million
50
45
Price($ thousand)
8 8 8 8
40
35
30
25
20
15
10
5
0
0
1
2
Market for Sedans
7
3 4 5 6
Quantity in millions of cars
Supply
8
Demand
9
10

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