Supply of auto tires

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Reference no: EM132001533

What effect will each of the following have on the supply of auto tires? (Keeping all else constant)

a. A technological advance in the methods of producing tires: 

(Click to select)

Decrease

Increase

No change

b. A decline in the number of firms in the tire industry: 

(Click to select)

Decrease

No change

Increase

c. An increase in the prices of rubber used in the production of tires: 

(Click to select)

No change

Increase

Decrease

d. The expectation that the equilibrium price of auto tires will be lower in the future than currently:  

(Click to select)

Decrease

No change

Increase

e. A decline in the price of large tires used for semi trucks and earth-hauling rigs, a substitute in production. (with no change in the price of auto tires): 

(Click to select)

No change

Increase

Decrease

f. The levying of a per-unit tax on each auto tire sold: 

(Click to select)

Decrease

Increase

No change

g. The granting of a 50-cent-per-unit subsidy for each auto tire produced: 

(Click to select)

No change

Increase

Decrease

Reference no: EM132001533

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