Question

Which of the following scenarios would likely shift the supply of cars to the left (decrease in supply)?

1. The price of cars decreases.
2. The price of automotive paint decreases.
3. Automobile workers become more productive.
4. The price of steel and aluminum increase.

Answer 1

Option 4, where the price of steel and aluminum increases, would likely shift the supply of cars to the left, resulting in a decrease in supply.

Step-by-step explanation:

In this scenario, option 4, where the price of steel and aluminum increase, would likely shift the supply of cars to the left, resulting in a decrease in supply.

When the price of steel and aluminum, important ingredients in manufacturing cars, increases, the production cost of cars rises. As a result, car manufacturers would supply a lower quantity of cars at any given price.

This can be graphically represented as a leftward shift of the supply curve, indicating that at any given price, the quantity supplied decreases.