1) Assume initial equilibrium in the domestic automobile market. You hear on the news that a major technology breakthrough for producing automobiles has happened. Using supply and demand analysis answer the following.
a) Will the supply, demand, both or neither curve change or shift? Why?
b) Which direction will the curve(s) you selected move, i.e., will it (they) increase, decrease or stay the same?
c) Will the price in equilibrium price increase, decrease, stay the same or is it indeterminate (can't tell)?
d) Will the quantity in equilibrium increase, decrease, stay the same or is it indeterminate (can't tell)?