Question: XYZ Corporation manufactures a family-oriented SUV.

a. If the company adopts a new technology that increases production efficiency, what happens to the equilibrium quantity and price of the vehicle? What happens to the supply and/or demand curves?

b. If consumer income goes up, what happens to the equilibrium quantity and price of the SUV? What happens to the supply and/or demand curves?

c. If the cost of steel goes up, what happens to the equilibrium quantity and price of the SUV? What happens to the supply and/or demand curves?

d. If the price of gasoline increases from $2.50 to $3.00 a gallon, what happens to the equilibrium quantity and price of the SUV? What happens to the supply and/or demand curves?

e. If competitor ABC Automotive reduces the price of its SUV, what happens to the equilibrium quantity and price of XYZ’s SUV? What happens to the supply and/or demand curves?