Learning Path
Question & Answer
Choose the Best Answer
A decrease in the cost of battery production
An increase in government taxes on electric vehicles
A rise in consumer preference for gasoline cars
An increase in the price of electric cars
Understanding the Answer
Let's break down why this is correct
When battery production becomes cheaper, makers can build more cars for the same price. Other options are incorrect because Higher taxes raise the cost of making cars, so producers supply less; More people want gasoline cars, which changes the demand for electric cars, not how many are made.
Key Concepts
Shifts in Supply Curve
medium level question
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Deep Dive: Shifts in Supply Curve
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Definition
Shifts in the supply curve occur when factors other than price influence the quantity of a product supplied at each price level. Changes in production costs, technology, government policies, and expectations can shift the supply curve either outward (increase in supply) or inward (decrease in supply).
Topic Definition
Shifts in the supply curve occur when factors other than price influence the quantity of a product supplied at each price level. Changes in production costs, technology, government policies, and expectations can shift the supply curve either outward (increase in supply) or inward (decrease in supply).
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