Answer to Question #265191 in Macroeconomics for nammu

Question

1. Consider the market for minivans. For each of the events listed here, identify if the determinants of demand or supply are changed. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the price and quantity of minivans. Finally, show the new equilibrium price and quantity as a result of the change. (HINT: start with an initial equilibrium on the Demand and Supply diagram). a. People decide to have more children.

Answer 1

 People decide to have more children. - Demand, Increase (shift right).