Economics(functions of prices) and Ford?

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feluda

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http://www.guardian.co.uk/business/2008/jul/24/ford.automotive1
the question is related to the above article. all help is appreciated especially if someone can point out the finer points of the answer. thanks in advance.

Q:american motorists are now showing preferences for smaller more fuel efficient cars. illustrate this with a demand and supply diagram and explain, with the 3 functions of prices, why mroe fuel efficient cars will now be produced in america
 
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