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A1. The demand in Japan for new automobiles is elastic and sensitive to market prices. Given that, describe the effect of each of the following on the quantity demanded or the demand for new autos in Japan. Indicate whether the effect of each is an upward or downward movement along a given demand curve or instead involves an outward or inward shift in the demand curve for new autos. Explain your answers.a. A decrease in the average price of new Japanese automobiles.b. A fall in Japanese interest rates.c. A rise in the price of public transportation in Japan.d. A rise in the price of food in the United States.
A1. The demand in Japan for new automobiles is elastic and sensitive to market prices.Given that, describe the effect of each of the following on the quantity demanded or thedemand for new autos…
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