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Which of the following will most likely decrease the supply of new cars?

A. The government decides to support the local car industry and provides many tax breaks and subsidies to car manufacturers.

B. The metals used in the frame of the car become more readily available and cheaper.

C. New technology innovation allows factories to produce twice as many cars for half as much.

D. The automobile industry workers go on strike.

Answer :

Final answer:

The automobile industry workers going on strike will most likely decrease the supply of new cars, as it reduces production capacity. Other options, such as government subsidies or cheaper materials, would likely increase supply. Therefore, strikes directly impact the number of cars produced.


Explanation:

Factors Affecting the Supply of New Cars

The supply of new cars in the market can be influenced by various factors, including government policies, production costs, and labor conditions. Among the options provided, the one that will most likely decrease the supply of new cars is:

  1. The automobile industry workers go on strike.

When workers go on strike, they stop working, which reduces production capacity. This reduction in labor means that fewer cars can be manufactured, leading to a decrease in the total supply available in the market. Also, strikes can cause delays, leading to longer wait times for consumers and less overall output from manufacturing plants.

In contrast, the other options would generally have a positive impact on the supply of new cars:

  • If the government supports the local car industry with tax breaks and subsidies, this would likely encourage production and increase supply.
  • When metals become more readily available and cheaper, production costs decline, allowing manufacturers to produce more cars at a lower price.
  • Technological innovations that increase production efficiency enable factories to produce more cars at lower costs, also increasing supply.

In conclusion, the strike scenario directly limits the capacity for car manufacturers to supply new vehicles, thus demonstrating a decrease in supply.


Learn more about Supply and Demand in the Automotive Industry here:

https://brainly.com/question/30161096


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