Consider the market for cars. Which determinant of supply is affected by each of the following events? a. A steel tariff increases the price of steel. Number of sellers Prices of inputs Prices of related goods Technology Expectations b. Improvements in robotics increase efficiency and reduce costs. Prices of related goods Technology Prices of inputs Number of sellers Expectations c. Factories close because of an economic downturn. Technology Prices of related goods Number of sellers Expectations Prices of inputs d. The government announces a plan to offer tax rebates for the purchase of commuter rail tickets. Number of sellers Prices of related goods Prices of inputs Expectations Technology e. The price of trucks falls, so factories produce more cars. Technology Number of sellers Prices of inputs Expectations Prices of related goods f. The government announces that it will dramatically rewrite efficiency standards, making it much harder for automakers to produce their cars. Prices of inputs Prices of related goods Expectations Technology Number of sellers

Question

13-10-2020
Business

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Consider the market for cars. Which determinant of supply is affected by each of the following events? a. A steel tariff increases the price of steel. Number of sellers Prices of inputs Prices of related goods Technology Expectations b. Improvements in robotics increase efficiency and reduce costs. Prices of related goods Technology Prices of inputs Number of sellers Expectations c. Factories close because of an economic downturn. Technology Prices of related goods Number of sellers Expectations Prices of inputs d. The government announces a plan to offer tax rebates for the purchase of commuter rail tickets. Number of sellers Prices of related goods Prices of inputs Expectations Technology e. The price of trucks falls, so factories produce more cars. Technology Number of sellers Prices of inputs Expectations Prices of related goods f. The government announces that it will dramatically rewrite efficiency standards, making it much harder for automakers to produce their cars. Prices of inputs Prices of related goods Expectations Technology Number of sellers

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Palky Palky · Answer 1 · 2020-10-13T18:54:58+02:00

Answer & Explanation:

1. A steel tariff increases the price of steel : Increase in of 'Price of inputs' - decreases (leftward shifts) supply curve

2. Improvement in robotics increase efficiency & reduces costs : Upgradation of 'technology'- increases (rightward shifts) supply curve

3. Factories close because of am economic downturn : 'Number of sellers' reduce - decreases (leftward shifts) supply curve.

4. The price of trucks falls, so factories produce more cars : Decrease in 'price of related goods' - increases (rightward shifts) supply curve.

5. The government announces a plan to offer tax rebates for the purchase of commuter rail tickets : 'Expectations' regarding rise in relative price of cars - decreases (leftward shifts) supply curve.

6. The government announces that it will dramatically rewrite efficiency standards, making it much harder for automakers to produce their cars : 'Goverment policy' stringency - decreases (leftwards shifts) supply curve.