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    Can you please provide assistance on question below? Most of us participate in the economy every day. As households, we can provide labor to firms or government in the input market and we are also consumers of goods and services in the product market. Think of a good that you have purchased in the last six months. If you haven't purchased any goods or services, you can think of some popular items. Find a recent article on that good or the firm that produces it.

    Answer the following three questions in a 2-3 page paper:

    1. Briefly describe the article in your own words.
    2. After reading this article, did your demand for the good change? What are some factors that would cause a change in demand for this good? How does quantity demanded of this good change?
    3. Give some examples of changes in supply in the context of your good. What would change the quantity supplied?
    4. What would happen if the government intervened and implemented a price floor on the good. How would this change the output and price?

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    Solution Preview

    1. Briefly describe the article in your own words.
    The title of the article is "Aging boomers set to put brakes on auto industry", The URL of the article is: http://www.vancouversun.com/business/Aging+boomers+brakes+auto+industry+Report/2616512/story.html
    The article points out that the auto industry has improved recently because of higher demand in markets like China, the aging of baby boomers will reduce sales in North America. The growth in sales of cars is likely to drop to a low level during the next ten years. The article says that even though in the year 2010 the automobile sales are likely to increase, the demographics are likely to dampen the growth. The next generation will not replace the purchasing power of the baby boomers and the result will be a shrinking demand by 2013. The auto market is however likely to benefit from the fact almost half of the cars on the roads of the US are 10 years or more old and will require replacement. This may sustain the demand for cars.
    2. After reading this article, ...

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