Final answer:
The graph is "shift the supply curve to the right".
According to the graph, when the price of metal decreases, the quantity of Nissan Xterras supplied at any particular Xterra price increases;
Instead, consider the future price of Xterras. If Nissan believes the future price of Xterras will be lower, then Nissan may increases supply today.
Step-by-step explanation:
Shifting the supply curve to the right indicates an increase in the quantity of a product supplied at every price point. In the case of Nissan Xterras, when the price of metal used in manufacturing decreases, production costs decline. This prompts Nissan to supply more Xterras at any given price, as lower costs make it more profitable to produce.
Additionally, expectations of future prices play a significant role. If Nissan anticipates a future decrease in Xterra prices, they might increase supply presently to maximize profits. This is based on the idea of selling more now at higher prices before the anticipated price drop.
In essence, a rightward shift in the supply curve signifies increased supply due to cost reductions or favorable future price expectations. In the context of Nissan Xterras, a decrease in metal prices or the anticipation of lower future prices would both lead to increased supply in the present.
Therefore, according to the graph and economic principles, both a decrease in metal prices and expectations of lower future Xterra prices can prompt Nissan to increase supply, causing a rightward shift in the supply curve.
Correct Answer: Both a decrease in metal prices and expectations of lower future Xterra prices can prompt Nissan to increase supply, leading to a rightward shift in the supply curve.