Question: Draw two supply and demand graphs: one for the new car market, the other for the used car market. Next, show how a decrease in

  1. Draw two supply and demand graphs: one for the new car market, the other for the used car market. Next, show how a decrease in supply affects the equilibrium price and quantity for new cars. Then, show how the change in price for new cars affects the supply and/or demand for used cars, and the change in equilibrium price and quantity of used cars.

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