Supply curve for sedans in an imaginary market
Course:- Business Economics
Reference No.:- EM13889142

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

The following calculator shows the supply curve for sedans in an imaginary market. For simplicity, assume that all sedans are identical and sell for the same price. Two factors that affect the supply of sedans are the level of technical knowledge- in this case, the speed with which auto-manufacturing robots can fasten bolts, or 'robot speed'-and the wage rate that auto manufacturers must pay their employees. Initially, the graph shows the supply curve when robots can faster 1500 bolts per hour and autoworkers earn $30 per hour.

Consider the previous graph. Suppose that the price of a sedan decreases from $ 26000 to $ 21,000 this would cause the (quantity supplied, or supply) of sedans to increase, which is reflected on the graph by a (shift of or movement along) the supply curve.

Suppose the workers union accepts a pay cut from $ 30 per hour to $ 25 per hour. Assuming that the robot speed remains the same, This causes a (rightward shift of, leftward movement along, rightward movement along, leftward shift of( the supply curve. This is because the pay cut makes cars (more fashionable, safer, less expensive to build, more expensive to build)?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Assume that total fixed costs are $46, that the average product of labor is 5 units when 10 units of output are produced, and that the wage rate is $12. If labor is the only v
Monopoly/Monopsony: Why is MR pS for a monopsonist, and why does it matter? Game Theory: What is the Nash equilibrium for some simple game?
Why does the government have a bad reputation of being inefficient? And if it is inefficient in some areas and not others, does that mean they should privatize the inefficient
If this were he case would there be any automatic stabilizers in the government economy. Elucidate what would there be any distinction between the full-employment deficit an
Select a news article dated within the previous two months and analyze the issue using the economic concepts and theory learned in this class. Include at least one graph devel
A trade agreement reducing trade barriers between the US and a low-income/low-wage economy would lead to an increase in the unemployment rates in the US. Free trade does not g
Suppose total output (real GDP) is $10,000 and worker-hours are 20,000. We can conclude that: If the nominal interest rate is 18 percent and the real interest rate is 6 percen
Consider an economy described by the production function: Y = F (K, L ) = K^(2/3)L^(1/3). Find the per worker production function. Find the steady-state capital stock per work