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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
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
Transcribed Image Text: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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