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AP® Microeconomics

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Supply and Demand: Automobiles

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The graph below represents the supply of automobiles.

Jane Schaefer. Created for Albert.io. Copyright 2016. All rights reserved.

Which of the following could cause movement from point A to point B on the curve?

A

Automobile workers accept a decrease in wages as part of their new collective bargaining agreement.

B

The popularity of automobiles increases as a result of improving economies overseas.

C

The cost of producing automobiles falls as a result of technological improvements in the production process.

D

The increasing availability of ride-sharing services makes automobiles less popular.

E

The government imposes a per-unit tax on the production of automobiles to help fund pollution abatement programs.