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Question & Answer
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A decrease in production costs due to advancements in battery technology
An increase in consumer demand for electric cars
Stricter government regulations on carbon emissions
A rise in the price of gasoline
Understanding the Answer
Let's break down why this is correct
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
Shifts in Supply Curve
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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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