In much of Europe, the legal age to obtain a driver's license is 18. If the legal driving age in the United States was changed to 18, how would this affect the market for new automobiles? The market for automobile insurance?
What will be an ideal response?
The demand for new automobiles would decrease, as would the demand for automobile insurance. These would decrease both the equilibrium price and equilibrium quantity for automobiles and for automobile insurance.
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The quantity supplied of a good or service is the amount that
A) producers wish they could sell at a higher price. B) is actually bought during a given time period at a given price. C) people are willing to buy during a given time period at a given price. D) producers plan to sell during a given time period at a given price.
For those workers who are given fringe benefits such as health insurance and pensions, the additional income this amounts to over and above the average hourly wage can be as much as (for some workers)
a. 10-12% b. 30-40% c. 51-62%% d. 70% or more