Which of the following events would cause a rightward shift in the market supply curve for automobiles?
A)A technological improvement that reduces the cost of production.
B)An increase in the wages of autoworkers.
C)A higher sales tax on automobiles.
D)A decrease in the number of sellers.

Question

Quizplus · Accepted Answer

A technological improvement that reduces the cost of production would make it cheaper for manufacturers to produce automobiles, resulting in an increase in the quantity supplied at each price level. This would lead to a rightward shift in the market supply curve for automobiles. The other options would have the opposite effect, causing a leftward shift in the supply curve.

Which of the Following Events Would Cause a Rightward Shift