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:
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Decrease
Increase
No change
b. A decline in the number of firms in the tire industry:
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Decrease
No change
Increase
c. An increase in the prices of rubber used in the production of tires:
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No change
Increase
Decrease
d. The expectation that the equilibrium price of auto tires will be lower in the future than currently:
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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):
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No change
Increase
Decrease
f. The levying of a per-unit tax on each auto tire sold:
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Decrease
Increase
No change
g. The granting of a 50-cent-per-unit subsidy for each auto tire produced:
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No change
Increase
Decrease