PRC-3 · Chapter 10 · Question 26 of 70
A major breakthrough in battery technology drastically cuts the cost of manufacturing electric vehicles (EVs). What is the immediate effect on the EV market?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Supply curve shifts right
Explanation
A decrease in production costs allows manufacturers to produce more at every price level, causing the supply curve to shift outward to the right.
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