9) A significant improvement in auto technology will: Shift the supply of cars i

ID: 1220260 • Letter: 9

Question

9) A significant improvement in auto technology will:

Shift the supply of cars in and to the left, raising the equilibrium price and quantity of cars.

Shift the demand for cars in and to the left, raising the equilibrium price of cars, but lowering the equilibrium price.

Shift the supply of cars in and to the left, increasing the equilibrium price of cars, but lowering the equilibrium quantity.

Shift the demand for cars in and to the left, lowering the equilibrium price and quantity of cars.

Shift the supply of cars out and to right, decreasing the equilibrium price of cars, but increasing the equilibrium quantity.

An improvement in the auto technology will shift the supply curve rightwards or downwards as more quantity can be produced at the same price level.

Thus, option E.

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