If there was an increase of people scrapping their cars, would this shift the supply curve of scrap metal to the right, or move along the curve?
Thanks.
Jp.
the situation i have been given is that the car scrappage scheme gives £2000 to owners buying new cars when they scrap their 10 year old cars. So that means they are only scrapping at one price, which means it not a shift and just a temperory movement?
yes of course when people start to scraping their cars then it rightly to shift the supply of scraping metal to the right but depending upon the price that if price also increase then its supply increases otherwise it remain stable.