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coSecure https//ng.cengage.com/static/nb/uifevo/indexhtmi?deploymentld-5812222324512711097949691346 eSBN-97813 MINDTAP w 1 for sedans (for example, Toyota Camrys or Honda Accords) in New York City. For simplidity, assume The following calculator shows the d that all sedans are identical and sell for the same price. Initilaly, the Carciator shows market demand under the following diraumstances: Average household income is $50,000 per year, the price of a gallon of regular urleaded gas is $4 per gallon, and the price of a sutrway ride is $2.00. changes you make to this graph. Use the graph input tool to help you answer the following questions. You will not be graded on any Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly Graph Input Tool Demand for Sedans Demand for Sedans 1 Price of a sedan (Thousands of Sedans per month) Demand Shifters Average Income Thousands of and Price of Gas Dollars per gailon) Price of a Subway Ride WEExplanation / Answer
Price of a Sedan decreased from $25000 to $20000, this would cause a increase in the demand curve.
An increase in the average income causes a rightward shift in the demand curve; therefore you may conclude that sedans are normal goods.
Because Sedan and gasoline are complements, an increase in the price of a gallon of gas shifts the demand curve for sedans to the left .
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