Suppose that a firm see a decrease in the wage rate. This leads to: a rightward shift in the firms short-run supply curve which results in a higher equilibrium price in the market a rightward shift in the firms short-run supply curve which results in a higher equilibrium quantity in the market a leftward shift in the firms short-run supply curve which results in a lower equilibrium quantity in the market a leftward shift in the firms short-run supply curve which results in a lower equilibrium price in the market

Suppose that a firm see a decrease in the wage rate. This leads to: a rightward shift in the firms short-run supply curve which results in a higher equilibrium price in the market a rightward shift in the firms short-run supply curve which results in a higher equilibrium quantity in the market a leftward shift in the firms short-run supply curve which results in a lower equilibrium quantity in the market a leftward shift in the firms short-run supply curve which results in a lower equilibrium price in the market

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

ChapterP2: Microeconomics Fundamentals

Section: Chapter Questions

Problem 2KC

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Classify each scenario according to whether the change in quantity is caused by a shift in the supply curve or movement along the supply curve. Shift of the supply curve Answer Bank Movement along the supply curve A national tire production company produces less of its premium quality tires as a result of lower tire prices. Scion decides to exit the car market. Delta Airlines is selling less airplane tickets due to the recent decreases in the price of flights for Friday departures Bakeries across the nation have noticed that the price of wheat has increased substantially
A straight-line supply curve will be inelastic: a. if it intersects the price axis above 0 b. if it intersects the quantity axis past 0 c on some parts of the curve, but not others d. only if it crosses through the origin
Suppose product y is an input of the production of product z. Product z is in turn is a substitute in product x. An increase in the price of y can be expected to increase the demand for x decrease the demand for x have no effect on the demand for product x decrease the supply of x increase the supply of x
The area under the supply curve represents _____. the fixed cost of producing the good or service the variable cost of producing the good or service the marginal value to the firm from producing the good or service the total revenue earned by the firm from selling the good or service
Assume that a new minimum wage is binding in Delaware for Leah's company and that at this new minimum wage rate, the quantity demanded for labor is less than at equilibrium. Which of the following statements must be true? The quantity demanded of labor will increase for Leah. Leah will pay the employees the equilibrium wage. Because the quantity supplied of labor is increased, Leah will hire many more employees. There will be a surplus of labor. Leah will have to either shutdown or increase the price of her goods dramatically.
The figure shows the hat market before and after a demand shift. Based on the figure, which of the following statements is correct? $25 $20 Supply $15 $10 $8 New demand Original 1demand OS 10 15 20 25 30 35 40 45 50 55 60 Quantity of hats, 000 The fall in the price from $8 to $6 is an exogenous shift in price. At C, both buyers and sellers are price-takers. Firms initially earn disequilibrium rents by remaining at A. Firms will initially drop their price while keeping the output fixed. Price
In the table below, identify the change in supply or demand. Tick R your answer(s) Demand Supply Supply Right Demand Description of event Left Left Right The population for the local area increases A new firm enters the industry creating competition for the existing firm A firm decides to increase its spending on advertising The price of a substitute product decreases There is an increase in the minimum wage A subsidy is given to producers of solar panels The winter fuel payment given to Pensioners increases. The government implements a tax on sugary drinks Farmers producing rise experience a severe drought The cost of raw materials decrease There is an increase in income tax There is an outbreak of foot and mouth disease As a new firm enters the industry, an incumbent firm decides to increase its spending on advertising.
Just solve questions 32-36, thanks. 28 If a legal ceiling price is set below the equilibrium price: a shortage of the product will occur a surplus of the product will occur an underground market will evolve neither the equilibrium price nor equilibrium quantity will be affected 29. To economists, the main difference between "the short run" and "the long run" is that: the law of diminishing marginal returns applies in the long run but not in the short run in the long run, all resources are variable while in the short run, at least one resource is fixed fixed costs are more important to decision making in the long run than they are in the short run in the short run all resources are fixed, while in the long run all resources are variable 30.A surplus of product will occur when price is: above equilibrium with the result that quantity demanded exceeds quantity supplied above equilibrium with the result that quantity supplied exceeds quantity demanded below equilibrium…
Problem Following are four graphs and four market scenarios, each of which would cause a shift in either the demand or the supply curve of plastic bottled water. For each scenario, do the necessary changes on the graphs below by showing the new market equilibrium reached. You are also expected to mention the changing factor. An improvement of the water bottling industry occurred lately. The price of glass bottled water increased and this is a substitute in production for the firm. The price of plastic has increased. Assume that plastic bottled water is an inferior good, and that the Kuwaiti economy witnessed an increase in the average household income from 20,000KD to 25,000 KD. Kindly explain in detail
Draw a non-linear supply curve which is elastic at lower price levels, unit elastic at moderate price levels and inelastic at higher price levels. Explain why this kind of supply curve shows behavior of firms dealing with issues of capacity utilization at their factories in response to price changes. Given that demand for wheat is inelastic, show graphically and explain in detail how an improvement in farming technology which increases wheat production can reduce income of farmers. Explain why OPEC has been unable to keep prices of oil high in the long run, based on the changes in demand and supply elasticity of oil.
when there is an increase in the cost of producing a good or service this will cause the supply curve to shift up and to the left true or false
TIMBER CRUNCH The demand and the supply of timber for construction in Australia are given by QD =120 – 20P QS = 40P We assume the market is perfectly competitive. 2.1. Compute the equilibrium price PCE and quantity QCE. 2.2. Plot on a graph: the demand curve, the supply curve, and the equilibrium price and quantity. 2.3: Calculate the price elasticity of demand and price elasticity of supply at the equilibrium price and quantity. 2.4. Calculate the producer surplus and consumer surplus in the equilibrium and illustrate them in a graph. 2.5. Due to Covid lockdowns, interstate transportation becomes difficult. Meanwhile, construction work is viewed as essential and therefore not affected by lockdowns. Use a demand and supply graph to explain how the lockdowns affect the equilibrium price and quantity. 2.6. After the equilibrium change in 2.5, the government introduces tax benefits for house renovation to stimulate the economy. As a result, there is an increase in construction…