1. Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected.  Also indicate whether demand or supply is increased or decreased.  Then show the effect on the price and quality of minivans in a separate supply and demand graph for each part.

                a. People decide to have more children.

                b. A strike by steelworkers raises steel prices

                c. Engineers develop new automated machinery for the production of minivans

                d. A stock-market crash lowers people’s wealth

                e. The price of station wagons rises

2. The market for pizza has the following demand and supply schedule

Graph the demand and supply curves.  What is the equilibrium price and quantity in this market?  If the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium?  If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium?