I have answered the problem below. I am having problems making the diagram to sh

Question

I have answered the problem below. I am having problems making the diagram to show the effects on the price and quanitiy of minivans. Can someone help with the diagram?

Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the price and quanity of minivans.

A. People decide to have more children.
B. A strike by steelworkers raises steel prices.
C. Engineers develop new automated machinery for the production of minivans.
D. The price of sports utility vehichles rises.
E. A stock-market crash lowers people's wealth.

Explanation / Answer

A. This would raise the quantity demand. Causing the Demand Curve to shift out assuming the number of children has something to do with the demand for minivans. B. This would cause the price to raise, and demand to drop but nothing in the shift. C. This would cause the supply curve to shift in making it cheaper to produce, causing price to drop and demand to raise. D. Assuming SUV's are substitute goods. It would cause your demand to raise shifting the curve out E. Lower people's wealth would drop the demand and push the demand curve in. Good Luck! Hope this helps! :D

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