Question

Discuss the immediate effects of the following events on demand or supply in each respective market. Assume each market is perfectly competitive. Indicate if you think demand or supply will shift right or left. Discuss how any shift in demand or supply will affect the market price.
If you believe the events will cause a shift in either the demand or supply schedule, indicate which variable caused the shift in demand or supply.

Market Event
a. Airline Security guards Terrorist attack on the U.S.

b. Wal -Mart stock The company expects profits to decrease in the future.

c. Yen Japanese products become more attractive.

d. Used Cars Major manufacturers introduce zero per cent financing on new cars