If more foreign auto plants relocate to the United States, we would expect

Question

Quizplus · Accepted Answer

When more foreign auto plants relocate to the United States, it would increase the supply of automobiles in the U.S. market, thereby shifting the U.S. supply curve for automobiles to the right. This is because an increase in the number of suppliers would lead to an increase in the quantity of automobiles supplied at every price level. As a result, consumers would have more options to choose from, and the price of automobiles would decrease.

If More Foreign Auto Plants Relocate to the United States