If the United Auto Workers Union Can Obtain a Substantial

question 370

Multiple Choice

If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be

• A) a decrease in the supply of automobiles, which is a shift to the right of the supply curve.
• B) a decrease in the supply of automobiles, which is a shift to the left of the supply curve.
• C) an increase in the supply of automobiles, which is a shift to the right of the supply curve.
• D) an increase in the supply of automobiles, which is a shift to the left of the supply curve.

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Definitions:

Supply

The total amount of a specific good or service that is available to consumers at a given time.

Equilibrium Quantity

The quantity of goods or services at which demand equals supply, and there is no tendency for the market price to change.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to a stable market condition.

Demand

The amount of a product or service that buyers are ready and capable of buying at different price points.