>> Business Economics
Discuss, using supply and demand analysis, the effect on the equilibrium price and quantity of new hybrid automobiles when the following occurs. You may use graphs similar to the readings in Week One (you do not have to show the graphs), to determine the change in the equilibrium price and quantity, and then explain your answer. Is the equilibrium price higher or lower, or is the change indeterminate? Is the equilibrium quantity higher or lower, or is the change indeterminate?