Which of the Following Events Would Cause a Rightward Shift

question 36

Multiple Choice

Which of the following events would cause a rightward shift in the market supply curve for automobiles?

• A)A technological improvement that reduces the cost of production.
• B)An increase in the wages of autoworkers.
• C)A higher sales tax on automobiles.
• D)A decrease in the number of sellers.

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Definitions:

Differential Income

The increase or decrease in income resulting from a change in business decisions or operations.

Variable Manufacturing Costs

Expenses that change in proportion to the production volume, such as raw materials and direct labor costs.

Differential Effect

The impact of a business decision on the revenue or cost, highlighting the difference between two alternatives.

Useful Life

The estimated period of time during which an asset is expected to be usable for the purpose for which it was acquired.