Equilibrium Price and Quantity of Perodua Kancil Cars in Different Situations

a) An increase in the price of petrol:

- Demand: An increase in the price of petrol will lead to a decrease in the demand for Perodua Kancil cars. This is because higher petrol prices make it more expensive to operate and maintain a car, leading consumers to look for more fuel-efficient alternatives or opt for public transportation.
- Supply: The supply of Perodua Kancil cars will remain unchanged as the price of petrol does not directly affect the production or availability of these cars.
- Equilibrium Price: With a decrease in demand and unchanged supply, the equilibrium price of Perodua Kancil cars will decrease.
- Equilibrium Quantity: The decrease in demand will result in a decrease in the equilibrium quantity of Perodua Kancil cars.

b) An increase in spare parts for Perodua Kancil cars:

- Demand: An increase in the price of spare parts for Perodua Kancil cars will lead to a decrease in the demand for these cars. Higher spare parts costs make it more expensive to repair and maintain the cars, discouraging potential buyers.
- Supply: The supply of Perodua Kancil cars will remain unchanged as the price of spare parts does not directly affect the production or availability of these cars.
- Equilibrium Price: With a decrease in demand and unchanged supply, the equilibrium price of Perodua Kancil cars will decrease.
- Equilibrium Quantity: The decrease in demand will result in a decrease in the equilibrium quantity of Perodua Kancil cars.

c) A decrease in the price of Proton Iswara cars in the market:

- Demand: A decrease in the price of Proton Iswara cars, which are a substitute for Perodua Kancil cars, will lead to a decrease in demand for the latter. Consumers may switch to the cheaper Proton Iswara cars, reducing the demand for Perodua Kancil cars.
- Supply: The supply of Perodua Kancil cars will remain unchanged as the price of Proton Iswara cars does not directly affect the production or availability of Perodua Kancil cars.
- Equilibrium Price: With a decrease in demand and unchanged supply, the equilibrium price of Perodua Kancil cars will decrease.
- Equilibrium Quantity: The decrease in demand will result in a decrease in the equilibrium quantity of Perodua Kancil cars.

d) A successful advertising campaign launched by Naza Kia:

- Demand: A successful advertising campaign by Naza Kia, which produces cars in a different market segment, is unlikely to directly affect the demand for Perodua Kancil cars. However, if the campaign highlights the advantages of Naza Kia cars over Perodua Kancil cars, it may indirectly decrease the demand for the latter.
- Supply: The supply of Perodua Kancil cars will remain unchanged as the advertising campaign does not directly affect the production or availability of these cars.
- Equilibrium Price: With unchanged demand and supply, the equilibrium price of Perodua Kancil cars will remain the same.
- Equilibrium Quantity: The equilibrium quantity of Perodua Kancil cars will also remain the same.

e) An increase in population and income:

- Demand: An increase in population and income will lead to an