1) A key skill in economics is the ability to use the theory of supply and demand to analyze specific markets. In this week’s discussion, you get a chance to demonstrate your ability to analyze the effects of a “shock” to the market for the automobile manufacturing in the U.S. due to the Coronavirus. Make sure to support your idea with at least one source. State whether the reality is as you expected.
Scenario: The U.S. and the world has been reeling from the impacts of the Coronavirus. Will this affect the the demand for new automobiles? Why? Which determinant of demand is being affected? Show graphically with before- and after-curves on the same axes. How will this change the equilibrium price and quantity of new automobiles in the U.S. in general? Explain your reasoning and include one credible source. If you are unable to develop a graph digitally, draw your graph by hand, take a picture, then upload it to your discussion post.
Submission Requirements:
The discussion grade will be based on how thorough and detailed your posts are.
Your initial post must be published first, should be substantial, and answer the question(s) in detail.
Proofread the content of your posts before making them public. Proper grammar and sentence structure are expected.
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