Consider the market for minivans. For each of the events listed below, identify which of the determinants of demand or supply are affected. Also, indicate whether demand or supply increases or decreases and the resulting effect on price and quantity demanded.

People decide to have more children.

As people decide to have more children, they will need cars to fit these children in. Minivans are a popular vehicle for people having many children. Demand for these minivans will increase and when demand increases, so will supply to meet the demand for the vehicle. This will affect all 5 of the demand determinants that include income, preferences, other prices, buyer's expectation, and number of buyers; and only the prices for supply determinants. Prices of the minivans should rise because of the rise of quantity demanded. 

A strike by steelworkers raises steel prices.

This strike by steelworkers that raises steel prices will likely increase the price of minivans since they are made from steel. Therefore, supply and demand will decrease. Supply will be less because it will cost more to produce these minivans, raising the price to sell the minivans, which will decrease the demand. Under demand determinants, income, buyer's expectations, number of buyers will be affected; and under supply determinants, prices, seller's expectations, and number of sellers will be affected. The price of the minivans will increase to make a profit and will decrease soon because of the low demand for the minivans. Quantity demanded will decrease with the higher prices. 

The price of sport utility vehicles rise.

Sport utility vehicles are SUV's that provide space just like the minivan. With the rise in cost for the SUV's, minivans would be the best alternative, causing a higher demand for the minivans. Determinants of demand affected are preference, other prices, and number of buyers; determinants of supply affected are other prices and seller's expectations. The price of the minivans will remain the same to have the competitive edge over the SUV's since the price of the minivans will be lower. Quantity demanded will increase because more people will be able to afford a minivan compared to a SUV.

A stock market crash lowers people's income.

When there is a stock market crash that lowers people's income, the demand for minivans will decrease. People won't have the money to afford the vehicle. This will affect the income and number of buyers of the demand determinants; and seller's expectation of the supply determinants. The price of the minivans will likely decrease to allow people to be able to buy the minivans or the price will remain the same for people who can still afford the vehicle. Quantity demanded will decrease for sure.