Consider the market for minivans. For each of the events listed below: â†’ identify which of the...

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Economics

Consider the market for minivans. For each of the events listedbelow:
â†’ identify which of the determinants of supply are affected
â†’ indicate whether supply increases or decreases
â†’ draw a diagram to show the effect on the supply curve. (Makesure to label the axes.)
a. (0.5 pt) A strike by steelworkers raises steel prices.
b. (0.5 pt) Engineers develop new automated machinery for theproduction of minivans
Please draw the graph as well

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Answer According to the law of supply price and the quantitysupplied of a product are positively related This means thathigher the price of the product greater the quantity suppliedSupply for a product refers to the quantity that producers arewilling to sell at that price Since quantity supplied and price ofthe good is positively related the supply curve is upwardrisingDifferencebetween quantity supplied and supply for a productA change in price of See Answer

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