Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A decrease in production costs due to advancements in battery technology
B
An increase in consumer demand for electric cars
C
Stricter government regulations on carbon emissions
D
A rise in the price of gasoline
Understanding the Answer
Let's break down why this is correct
Answer
A rightward shift of the electric‑car supply curve usually means that producing each car has become cheaper or easier, so manufacturers can supply more at every price. This often happens when battery prices drop, new production techniques lower costs, or governments give subsidies or tax breaks to car makers. When costs fall, firms can produce more cars for the same price, so the supply curve moves to the right. For example, if a new battery chemistry reduces battery costs by 30 %, a company can now produce 1,000 more cars at the same price, shifting the supply curve rightward.
Detailed Explanation
When battery makers find cheaper ways to build batteries, the cost to make each car goes down. Other options are incorrect because Higher consumer demand pulls the demand curve, not the supply curve; Tighter carbon rules raise production costs.
Key Concepts
Supply Curve Shifts
Production Costs
Consumer Demand
Topic
Shifts in Supply Curve
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1If the demand for a product is elastic and the supply curve shifts to the left due to increased production costs, what is the likely outcome for the equilibrium price and quantity?
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Question 2Which of the following events would most likely cause a rightward shift in the demand curve for a normal good?
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Question 3Which of the following scenarios would most likely cause a rightward shift in the supply curve for smartphones?
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Question 4Which of the following factors can cause a shift in the demand curve for a product? Select all that apply.
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Question 5Which of the following factors would cause a rightward shift in the demand curve for a luxury car?
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Question 6Which of the following factors can cause a shift in the supply curve for a product? Select all that apply.
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7
Question 7In what scenario would the supply curve for electric cars shift to the right?
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8
Question 8Arrange the following factors that can cause a rightward shift in the supply curve in the correct order: A) Decrease in production costs, B) Introduction of new technology, C) Government subsidies, D) Increase in producer expectations.
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Question 9Which of the following factors would likely cause a rightward shift in the supply curve for smartphones?
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