Reasons for Changes in Supply

How will the following event impact supply of U.S. made cars?

"The Auto Workers' Union agrees to wage cuts"

• There will be an increase in S

• There will be a decrease in S

• There will be an increase in QS

• There will be a decrease in QS

• There will be a change in Demand - so supply is unaffected

If the Auto Workers' Union agrees to wage cuts, and you are graphing the change to the supply of U.S. made cars...

In which direction would your curve shift?

What curve do you end up on if you started at B?

• right, C

• left, A

• left, C

• stay on B

How will the following event impact supply of U.S. made cars?

"New robot technology increases efficiency at the factory."

• There will be an increase in S

• There will be a decrease in S

• There will be an increase in QS

• There will be a decrease in QS

• There will be a change in Demand - so supply is unaffected

If new robot technology increases efficiency, and you are graphing the change to the supply of U.S. made cars...

In which direction would your curve shift?

What curve do you end up on if you started at B?

How will the following event impact supply of U.S. made cars?

"The price of U.S. cars increases."

• There will be an increase in S

• There will be a decrease in S

• There will be an increase in QS

• There will be a decrease in QS

• There will be a change in Demand - so supply is unaffected

If the price of U.S. cars increases, and you are graphing the change to the supply of U.S. made cars (a)  

• Shift Right / Curve C
• Shift Left / Curve A
• Shift Right / Curve A
• Shift Left / Curve C
• No shift - Stay on Curve B

How will the following event impact supply of U.S. made cars?

"A nationwide auto workers strike begins."

• There will be an increase in S

• There will be a decrease in S

• There will be an increase in QS

• There will be a decrease in QS

• There will be a change in Demand - so supply is unaffected

If a nationwide auto workers strike begins, and you are graphing the change to the supply of U.S. made cars (a)  

• Shift Right / Curve C
• Shift Left / Curve A
• Shift Right / Curve A
• Shift Left / Curve C
• No shift - Stay on Curve B

How will the following event impact supply of U.S. made cars?

"The cost of steel decreases."

• There will be an increase in S

• There will be a decrease in S

• There will be an increase in QS

• There will be a decrease in QS

• There will be a change in Demand - so supply is unaffected

If the price of steel decreases, and you are graphing the change to the supply of U.S. made cars...

In which direction would your curve shift?

What curve do you end up on if you started at B?

(a)  

• Shift Right / Curve C
• Shift Left / Curve A
• Move along curve B
• Shift Right / curve A