This production possibilities graph shows the production of cars and trucks for the United States for 2019 and Line A shows the current production.

(a) Suppose the economy was initially producing at Line A. During the Pandemic of 2020, cars were still in production, but there was a shortage of trucks by 1 million. Redraw this graph and draw this new line and label the new line as B.

(b) Now suppose the economy rebounds in 2021 and production of cars and trucks increase 20% from 2019 production. Chose a point on the graph that you drew for part A and label that point C.

(c) What would happen to the supply of cars and trucks in 2022 if steel, a necessary component to produce vehicles, were now not available? Would the supply of vehicles increase, decrease, or stay the same? Explain your reason.

(d) Based on your answer in part c, what would happen to prices of all vehicles in the economy? Explain your reason.