Answer Happy

Draw a market demand curve and market supply curve for automobiles and label these curves D, and Si, respectively. On the same graph, show what would happen if the auto workers union required all manufacturers of automobiles to now provide health insurance for ALL workers and their dependents. (Note: Assume that prior to this change, manufacturers of automobiles do NOT provide health insurance coverage to 100 percent of their employees and/or their dependents.) Think about whether you think this change would affect the demand curve or the supply curve for automobiles, and then consider in which direction you think the curve should shift. Draw a new curve and use a subscript 2 to identify it as the new demand (D₂) or supply (S₂), whichever is appropriate. Be sure to label: Both axes- The original equilibrium price and quantity before the change. • The new equilibrium price and quantity after the change - Draw this graph by hand and then upload a picture of it here. Make sure your name and the date appear on the image, also written by hand.