Autoworkers Negotiate a Wage Increase

question 30

Multiple Choice

Autoworkers negotiate a wage increase.How does this change affect the supply curve of cars?

• A)It shifts the supply curve leftward.
• B)The supply curve will shift but there is not enough information to tell if the change shifts the supply curve rightward,leftward or not at all.
• C)It shifts the supply curve rightward.
• D)It creates a movement downward along the supply curve.
• E)It does not shift the supply curve or create a movement along it.