Using your graphing document, select the graph that best demonstrates how both of the scenarios below will impact the market for fuel-efficient cars in the short-run:

• There is increase in the cost of computer chips used in fuel-efficient cars to monitor gas mileage.
• Consumers have expectations that the price of gasoline will increase in the future.

Explain why you chose this graph to represent the impact in the market for fuel-efficient cars. What is the reason behind each shift/s?

Based on the graph you selected, what do you predict will happen to equilibrium price and quantity?

Please use these graphs for our exam. Choose the graph that best represents the answer to the question. Graph (A) Graph (E) 31 $2 Graph (B) Graph (F) S1 82 DZ D1 Graph (C) 31 52 m D Graph (G) 52 S1 R g: DZ D1 Graph (D) Graph (H) 32 82 S1 81