Demonstrate, using supply and demand analysis, the impact on the equilibrium price and quantity of new Hybrid automobiles when the following occurs.
A) Incomes increase
B) The price of batteries used in the production of these vehicles decreases
In your answer, draw the supply and demand graphs separately (you do not have to show that) and based on that describe the change in the equilibrium price and quantity. Mention clearly whether the equilibrium price higher, lower, or is the change indeterminate. Also mention whether the equilibrium quantity higher, lower, or is the change indeterminate?