Which of the following scenarios would likely shift the supply of cars to the left (decrease in supply)?multiple choiceAutomobile workers become more productive.The price of automotive paint decreases.The price of steel and aluminum increase.The price of cars decreases.
Question
Which of the following scenarios would likely shift the supply of cars to the left (decrease in supply)?multiple choiceAutomobile workers become more productive.The price of automotive paint decreases.The price of steel and aluminum increase.The price of cars decreases.
Solution
The scenario that would likely shift the supply of cars to the left (decrease in supply) is "The price of steel and aluminum increase."
Here's why:
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"Automobile workers become more productive." - This would likely increase the supply of cars, not decrease it. More productivity means more cars can be produced in the same amount of time.
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"The price of automotive paint decreases." - This would also likely increase the supply of cars. If the cost of production decreases (in this case, due to a decrease in the price of paint), manufacturers can produce more cars for the same cost, increasing supply.
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"The price of steel and aluminum increase." - This would likely decrease the supply of cars. Steel and aluminum are key inputs in the production of cars. If their prices increase, the cost of producing cars also increases. Manufacturers may then choose to produce fewer cars, leading to a decrease in supply.
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"The price of cars decreases." - This would not directly affect the supply of cars. The price of cars is determined by the interaction of supply and demand in the market. A decrease in price could be the result of a decrease in demand, an increase in supply, or both. It does not directly cause a decrease in supply.
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