Question

Looking at the minivan market. identify which of the determinants of demand or supply are affected.
A) People decide to have more children
B) A strike by steal workers raises steal prices
C) Engineers develop a new automated machinery for the production of of minivans.
D) The price of sports utility vehicles rises.
E) A stock market crash lowers people's income.

Answer 1

You don't have to answer all of the parts I just need help gathering an understanding for finding the determinants.

Answer 2

A) People decide to have more children, could mean more demand shifts to the right in the short run, as the population increases, and demand increases.
In the long run, it could also mean a shift to the right in supply, as the labour force increases in population.

B) If there's a strike, there's less supply, as no workers are working, so there'd be a shift to the left in supply, making supply more scarce, and therefore making prices rise.

C) Usually, new technology (which is efficient) produces more supply and output, so supply may shift to the right as new technology is introduced.

I'm sure you have a good understanding now...

http://staffwww.fullcoll.edu/fchan/Micro/1determinants_of_demand.htm
Here's a site to look up more on determinants, but it is just basically shifts of the supply and demand curves, due to different logical thinking reasons.

Answer 3

Thanks so much! I really appreciate this :)