If the Price of Rubber Were to Increase by 20

question 160

Multiple Choice

If the price of rubber were to increase by 20 percent over the fiscal year and if all else were held constant,what would we expect to happen to the supply curve of tires that are sold separately from automobiles?

• A) The supply curve would shift to the right.
• B) The quantity supplied would increase.
• C) The supply curve would shift to the left.
• D) The supply curve would shift down.
• E) Nothing; the cost of rubber has no impact on the supply of tires.

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