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Indicate how each of the following events will shift the demand curve for the Ford Taurus(a midsize car):
a. GM introduces a new line of small, fuel-efficient cars;
b. Following an agreement between the US and Japan, Japanese car manufacturers will reduce their exports of medium sized car to the US;
a. An introduction of new line of small, fuel efficient cars would decrease the demand for the Ford Taurus and its demand curve would shift to left. b. Reduced exports of medium…

ized car to US would increase the demand for the Ford Taurus and thus there would be a rightward shift in demand curve.

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