Use the supply and demand model to predict how each of the following events would affect the auto market. Tell whether the demand or supply curve shifts, whether it is an increade and decrease, and report your predicted changes in price and quantity. 1. The price of gasoline falls significantly. 2. Improved technology raises productivity on auto assembly lines by 20% 3. The government starts giving sizable subsidies to public transportation.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Use the supply and demand model to predict how each of the following events would affect the auto market. Tell whether the demand or supply curve
shifts, whether it is an increade and decrease, and report your predicted changes in price and quantity.
1. The price of gasoline falls significantly.
2. Improved technology raises productivity on auto assembly lines by 20%
3. The government starts giving sizable subsidies to public transportation.
Transcribed Image Text:Use the supply and demand model to predict how each of the following events would affect the auto market. Tell whether the demand or supply curve shifts, whether it is an increade and decrease, and report your predicted changes in price and quantity. 1. The price of gasoline falls significantly. 2. Improved technology raises productivity on auto assembly lines by 20% 3. The government starts giving sizable subsidies to public transportation.
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