If the Canadian Auto Workers union obtains a substantial wage increase for its workers, the price of automobiles will rise. What kind of shift can this price increase be attributed to?

Question

Quizplus · Accepted Answer

A wage increase for workers would increase the cost of production for automakers, which would lead to a decrease in supply. This shift could be represented by a leftward shift in the supply curve, resulting in higher prices for automobiles.

If the Canadian Auto Workers Union Obtains a Substantial Wage