Considers the graph that represents the supply and demand in the market for automobiles. for each of the following events, draw the new market outcome, and say whether the equilibrium price and quantity will increase or decrease. always begin with the market at the original equilibrium. make sure you label your curves properly.
a. environmentalists launch a successful one family, one car campaign.
b. a steel tariff increases the price of steel.
c. a baby boom occurred 16 years ago.
d. an oil shortage causes the price of gasoline to soar.
e. improvements in robotics increase efficiency and reduce costs.
f. the government offers a tax rebate for the purchase of commuter rail tickets.

Uppose that the federal reserve purchases a bond for $100,000 from donald truck, who deposits the proceeds in the manufacturer’s national bank. what will be the impact of this purchase on the supply of money? the money supply will increase by $100,000. the money supply will increase by $80,000. the money supply will increase by $500,000. this action will have no effect on the money supply. if the reserve requirement ratio is 20 percent, what is the maximum amount of additional loans that the manufacturer’s bank will be able to extend as the result of truck’s deposit? the maximum additional loans is $100,000. the maximum additional loans is $80,000. the maximum additional loans is $20,000. the maximum additional loans is $500,000. given the 20 percent reserve requirement, what is the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system because of the fed’s action? this action will have no effect on the money supply. the money supply will eventually increase by $80,000. the money supply will eventually increase by $500,000. the money supply will eventually increase by $100,000.

Explain the relationship between consumers and producers in economic growth and activity

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars