what effect will each of the following have on the supply of auto tires course hero

What could cause the price of auto tires to increase?

A technological advance in the methods of producing tires. b. A decline in the number of firms in the tire industry. c. An increase in the prices of rubber used in the production of tires. d. The expectation that the equilibrium price of auto tires will be lower in the future than currently.

What is the main reason for the tire industry to decline?

a. A technological advance in the methods of producing tires. b. A decline in the number of firms in the tire industry. c. An increase in the prices of rubber used in the production of tires.

What is the effect of technological advances on tire supply?

Experts are tested by Chegg as specialists in their subject area. We review their content and use your feedback to keep the quality high. a. Supply will increase Explanation: A technological advance permits the tire manufacturers for more production of tires using the same amount of inputs.

Will the price of auto tires be lower in the future?

The expectation that the equilibrium price of auto tires will be lower in the future than currently: e. A decline in the price of large tires used for semi trucks and earth-hauling rigs, a substitute in production.

What does "c" mean in tires?

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

What will increase in market price lead to?

An increase in market price will lead to an increase in quantity supplied.

What is equilibrium in a market?

A market is in equilibrium. if the amount producers want to sell is equal to the amount consumers want to buy. Assume, in a competitive market, price is initially above the equilibrium level. We predict that price will: decrease, quantity demanded will increase, and quantity supplied will decrease. From Diagram 3.D.

What increased the demand for natural gas?

substitute goods and the higher price for oil increased the demand for natural gas.

What does "decrement" mean in tires?

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):

Why do stock prices change?

Prices change due to the whims of those selling shares.

What will a reduction in market price lead to?

A reduction in market price will lead to an increase in quantity demanded.

What caused the burning of millions of cattle carcasses in Europe in 2001?

In 2001 an outbreak of hoof-and-mouth disease in Europe led to the burning of millions of cattle carcasses. What impact do you think this had on the following?