For each of the following four situations, determine if it is the demand or the supply of autos that is affected by the change. Use the demand and supply diagram to identify the effects of this change on the equilibrium price and quantity exchanged of autos. Increase in the price of steel  auto makers install robots on assembly lines

Suppose exceptionally good weather provides a much bigger than expected orange harvest. Instructions: Depict how this event will affect the market for oranges by dragging the appropriate curve in the graph. Price (S/orange) Ž I Market for oranges Quantity (oranges/week) $ What will happen to the equilibrium price and quantity of oranges? ↑ Equilibrium price will decrease and equilibrium quantity will increase. Equilibrium price will increase and equilibrium quantity will decrease. Both equilibrium price and equilibrium quantity will decrease. Both equilibrium price and equilibrium quantity will increase.

Suppose that the market for coffede is in equilibrium at a price of $2.25 per pound and a monthly quantity of 50 million pounds. After a cold winter in South America, people know that the supply of coffee months from now will be sharply reduced. What if anything, will happen in the foffee market now? Explain.

With the theory of demand and supply, carefully explain the impact of an increase in price of steel (iron) on the market equilibrium quantity and price of automobiles in the USA.