Suppose Over the Next Several Years the Productivity of Firms

question 112

Multiple Choice

Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to

• A)a decrease in the supply of electric cars so that the supply curve shifts leftward.
• B)a decrease in the supply of electric cars so that the supply curve shifts rightward.
• C)an increase in the supply of electric cars so that the supply curve shifts leftward.
• D)no change in the supply of electric cars, only a change in the quantity supplied of electric cars.
• E)an increase in the supply electric cars so that the supply curve shifts rightward.

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Definitions:

Cost Estimates

An evaluation or approximation of the likely expenses involved in the execution of a project or production of a good.

Goodwill

The positive reputation and relationship a business maintains with its customers, employees, and community, often considered an intangible asset.

Favorable Response

A positive or approving reaction to a query, proposal, or situation.

Logical Order

An arrangement of ideas or elements that follows a coherent sequence, ensuring clarity and enhancing the effectiveness of communication.