Answer to Question #228904 in Economics of Enterprise for neha

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 successful advertising of Toyota cars.

Answer 1

 

A successful advertising indicates that the demand will increase as the supply goes down. The price may also shoot as Quantity decreases.