Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 3 - Demand, Supply, and Market Equilibrium - Questions - Page 66: 6d

Answer

The supply of auto tires will increase with the expectation that the equilibrium price of auto tires will be lower in the future than currently.

Work Step by Step

When the equilibrium price of a product decreases, supply invariably increases. Producers want to sell before the expected price fall, so they increase current supply.
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