Economics question help?

[cinnard]

I dont really get this question can someone give me some examples??

In a 150 to 250 word post under this thread, address the following.

The law of demand states as a price of a good increases the quantity demanded decreases holding everything else constant. A change in demand occurs if one of the things held constant, such as consumer income, changes. The law of supply states as a price of a good increases the quantity supplied increases holding everything else constant. A change in supply occurs if one of the things held constant, such as the price of an input, changes.

Give an example where a change in supply brings about a change in the equilibrium values of price and quantity. Then give a different example where a change in demand brings about a change in the equilibrium values of price and quantity. Describe the changes in each of your two examples.

HINT: Assume a stationary demand curve for the first example. Assume a stationary supply curve for the second example.)

[treasigh]

In 2008 after the market fall, people were afraid to spend money.
Autos were not selling so the manufactures had to cut prices.
Lower prices helped a bit.

If they had raised prices, fewer cars would have been sold
so the demand would be inelastic. Elastic means that people
are willing to pay whatever the product costs. Inelastic means
that people won't stretch their budget for a costlier product - demand falls.