For each of the following events, describe what would predictably happen to (1) the demand/supply curves and (2) to equilibrium price. You are not required to draw a graph for this problem; a description will suffice. You may draw a graph if you wish to do so. (Hint: don't shift both curves unless appropriate).

A. The impact on the U.S. “hybrid” automobile market in the event of a major increase in gasoline prices, ceteris paribus.

B. The impact on the entire U.S. domestic auto market if the price for foreign autos increases due to a weakening of the U.S. dollar, ceteris paribus.

C. The likely impact on the U.S. domestic auto market in the event of new health care legislation that mandates more employer-provided health care, ceteris paribus.

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a In the event of a major increase in gasoline prices the automobi... View the full answer