Graphing Problem- Draw the graph then answer the questions below.
a. Assume that the market for automobiles begins in equilibrium. Draw the demand and supply curves for autos in the graph. Label the curves and show the equilibrium price and quantity.
b. Draw the changes that would occur if, there is an increase in the wages paid to automobile workers (a cost of production). Show the new equilibrium.
c. When the new equilibrium is reached, the price of automobiles will ______ (rise/fall?) and the quantity of automobiles sold will _______(rise/fall?)