QUESTION 8

Prices of imported new cars has been steadily increasing every year by approximately 1.5% per year. It is expected that next year prices will increase by 5%.

Select the item from the list provided to make the following statements true.

- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.	The scenario above will most likely cause a/an ___________________ for imported cars this year.
- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.	If the government imposed a higher import tariff on cars, this will cause a/an ____________________the supply curve for imported cars.
- 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.	A new technology has improved the production of domestic cars which drives down the price for domestic cars. This will lead to a/an ___________ in demand for imported cars.

1.	decrease
2.	rightward shift of
3.	downward movement along the demand curve
4.	upward movement along
5.	leftward shift of
6.	rightward shift of the demand curve
7.	increase
8.	downward movement along
9.	constant
10.	leftward shift of the demand curve
11.	unknown effect (due to insufficient information)
12.	upward movement along the demand curve