stickle Reasons for Changes in Supply Part A Read the eight

stickle Reasons for Changes in Supply Part A Read the eight newspaper headlines in igure 13.2, and record the impact, if any, of each event on the supply of cars. Use the first column to the right of the headline to show whether the event will cause a change in supply. Use the next column to record whether the change is an increase or a decrease in supply. In the third column, decide whether the supply curve shifts left or right. Finally, write the letter for the new supply curve. Use Pigure 13.1 to help you. Always start at curve B, and. move only one curve at a time. Two headlines imply that the supply of cars does not change. Figure 13.1 Supply of Foreign and Domestic Cars B C QUANTITY Figure 13.2 Supply Supply Curve Shifts New Shit? (Y/N) Shifts, Inc/Dec? Left/Right? Curve Headline 1. Auto Workers\' Union Agrees to Wage Cuts 2. New Robot Technology Increases Efficiency 3. Nationwide Auto Strike Began at Midnight 4. New Import Quotas Reduce Foreign Car Imports 5. Cost of Steel Rises 6. Auto Producer Goes Bankrupt, Closes Operation 7. Buyers Reject New Models National Income Rises 2%

Solution

1 yes supply shifts increase right C

2 supply shifts increase right C

3 No shift neither increases nor decreases A

4 supply shifts increases right C

Wage decrease means more is supplied at same price leading to 1 effect. Similarly robot technology Decreases cost and leads to similar change. Strike if autos have no effect on supply. Its effect is on demand. As foriegners imports decrease domestic production increases lead to changes as mentioned in 4

Can answer only 4 parts according to chegg policy