If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be
A) a decrease in the supply of automobiles, which is a shift to the right of the supply curve.
B) a decrease in the supply of automobiles, which is a shift to the left of the supply curve.
C) an increase in the supply of automobiles, which is a shift to the right of the supply curve.
D) an increase in the supply of automobiles, which is a shift to the left of the supply curve.

Question

Quizplus · Accepted Answer

A substantial wage increase for auto workers raises production costs, leading to a decrease in the supply of automobiles, shifting the supply curve to the left.

If the United Auto Workers Union Can Obtain a Substantial