Answer to Question #225831 in Economics of Enterprise for miksha

Question

For each of the following statements, draw a diagram that illustrates the likely effect on the market for Toyota cars. Indicate in each case the impact on equilibrium price and equilibrium quantity with full explanation.

a. A Mechanic Engineer warns that new Toyota cars overheats during long journeys. ( 2 marks)

b. The price of rubber which is used to produce tyres reduces. (2 marks)

c. A fall in the price of Nissan cars.(2 marks)

d. A rise in bus tariffs . (2 marks)

Answer 1

Solution:

a.).

b.). 

c.).

d.).