1. Demand and Supply
... goods and of complementary goods, expected future price of good and publicity. 2a. The increase of public transportation fares will lead to an increase in the entire demand curve for cars (D1 to D2 in the graph). The fares become more expensive therefore decreasing people's desire to use public transportation because it is unaffordable. This demand decrease in the public transportation ... industry will lead to an increase demand for cars because cars are the only substitute goods for public transportation. Therefore increasing the quantity of cars produced (Qe1 to Qe2 on the graph) whi...
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- Approx Pages: 3
- Grade Level: High School