Which of the graphs above represents the situation described for all cases below (a to e): e.g. Suppose the price of lumber falls dramatically. Which panel best describes how this will affect the market for houses? (supply of houses will increase)
a. Which one of the above diagrams best illustrates the effect: If oil prices suddenly fell after rising rapidly for years, what would you expect to happen to the demand for small cars?
b. Which one of the above diagrams best illustrates the effect: If oil prices suddenly fell after rising rapidly for years, what would you expect to happen to the demand for luxury sedans?
c. Which one of the above diagrams best illustrates the effect of an increase in crude oil prices on the market for gasoline?
d. Which one of the above diagrams best illustrates the effect: If oil prices suddenly fell after rising rapidly for years, what would you expect to happen to the supply of synthetic fabrics? (Most are made from petroleum products)
e. Which one of the above diagrams best illustrates the effect of an increase in movie ticket prices on the market for for-demand movies on TV?