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Microeconomics Help: The accompanying graph represents a hypothetical market for luxury automobiles
1 month ago
11
The accompanying graph represents a hypothetical market for luxury automobiles.
Suppose that a major luxury car producer exits the market in order to produce more economy cars. At the same time, a new tax law means that many tax payers will receive large refunds this year. According to a marketing firm, the result is a higher quantity of luxury cars selling at higher prices. Manipulate the graph to demonstrate what must be happening to supply and demand.
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