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What effect will each of the following have on the demand for small automobiles such as the Mini Cooper and Smart car?

a. Small automobiles become more fashionable.

b. The price of large automobiles rises (with the price of small autos remaining the same).

c. Income declines and small autos are an inferior good.

d. Consumers anticipate that the price of small autos will greatly come down in the near future.

e. The price of gasoline substantially drops.

Be sure to incorporate terms from the Unit 1 readings into your response, and address the case study in a thorough, yet concise, manner.


Write the Report in your own words. Format your text consistently throughout the Report, taking care to cite correctly the sources used in APA formatting. Cite at least two sources (one source can be your text, other sources can be articles, or bible scripture to support your writing).

Also be sure to proofread for spelling and grammar. The total word count for your report is: 250-500 words (1 page of double-spaced text = approximately 250 words). A title page and references do not count in this word count.