Consider the market for minivans. For each of the events listed, identify which of the determinants of demand are affected. Use the demand and supply diagram to identify the effects of this change on the equilibrium price and quantity exchanged of minivans. People decide to have more children. The price of station wagons rises.

What are the potential effects in the market for SUVs as the price of gasoline increases. a) draw a supply/demand graph of the automobile market. b) indicate starting equilibrium price and equilibrium quantity.  c)analyze graphically the effect of the change given above on equilibrium price and equilibrium quantity in the mobile market.

A newspaper report states that chocolate production is failing to keep up with worldwide consumption and could fall behind by 2 million metric tons annually by 2030. Does this create an excess demand or excess supply situation? Explain how it will affect the price of chocolates in the future.