Question

If the united auto workers union can obtain a substantial wage increase for auto workers, there will be a(n): decrease in the supply of automobiles, which is a shift to the right of the supply curve. decrease in the supply of automobiles, which is a shift to the left of the supply curve. increase in the supply of automobiles, which is a shift to the right of the supply curve. increase in the supply of automobiles, which is a shift to the left of the supply curve.

Answer 1

There will be a "decrease in the supply of automobiles, which is a shift to the left of the supply curve."

Changes in the cost of production and related variables can cause a whole supply curve to move right or left. This causes a higher or lower amount to be provided at a given cost. The ceteris paribus assumption is when the supply curves relate costs and amounts provided accepting no different components change.