For each of the following events, identify which of the determinants of demand or supply are affected.
a. Engineers develop new automated machinery for the production of electric cars.
b. People increase their concern for the environment.
c. An economic boom raises people's wealth.
d. A strike by aluminum workers raises the price of aluminum.
e. The price of gas-powered cars fans.
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Ответ:
Identifying the determinants of demand and supply affected by the following events:
a. Engineers develop new automated machinery for the production of electric cars.
Technology
b. People increase their concern for the environment.
Environmental concerns and government regulations
c. An economic boom raises people's wealth.
Income distribution
d. A strike by aluminum workers raises the price of aluminum.
Price of resource
e. The price of gas-powered cars fans.
Price
Explanation:
We can identify the following determinants of supply: resource prices, technology, taxes and subsidies, prices of other related goods, price expectations, and the number of sellers in the market. Similarly, demand determinants include price, income, prices of complementary goods and substitutes, consumers' taste and expectations, etc.
Ответ: