Answer to Question #264619 in Economics for chik

Question

The Toyota Motor Corporation makes cars in response to customer orders rather than attempting to sell cars it has already built. If the company received a large increase in orders for its Prius model, what will be expected of its current supply curve on a demand and supply diagram? 

Answer 1

If the company received a large increase in orders for its Prius model, then it means that the demand for cars increases, and both the price and quantity supplied will increase. So, no changes are expected in its current supply curve.