choose one in the brackets to fill in for the following question: If the wage rate for workers in car manufacturing rises, the (supply curve , quantity supplied ) for cars will [ increase, decrease, remain unchanged ) and the [ demand curve, quantity demanded) for cars will [ increase, remain unchanged, decrease)
choose one in the brackets to fill in for the following question: If the wage rate for workers in car manufacturing rises, the (supply curve , quantity supplied ) for cars will [ increase, decrease, remain unchanged ) and the [
Consider a competitive
step 1:( creates an access demand at the original market
step 2: (this puts upward pressure on the price, this puts downward pressure on the price , this does not affect the price in this market )
step 3: ( there is an increase in supply, as the price rise, produces are willing to sell more as that increases their profits: there is an increase in the quantity supplied, producers do not change their willingness to produce & sell the goods; there is no change in the quantity supplied, non of the statements apply, as price falls, firms maximise profits by selling fewer units: producers reduce the quantity they are willing to sell there is a decrease in the quantity supplied ) and ( there is a decrease in demand , as the price falls, consumers increaese the amount of the goods they are willing to purchase : there is an increase in quantity demanded, as price rises, consumers reduces the amount of the goods they are willing to purchase: there is a decrease in the quantity demanded , consumers do not change their willingness to purchase the goods: tehre is no change in the quantity demanded , non of these statements apply)
step 4: (step 3 keeps happening as long as there is excess supply , step 3 keeps happening as long as there is excess demand)
step 5: a new equilibrium occurs at, ( a higher price and lower quantity, lower price higher quantity, higher price and higher quanitity, lower price and lower quantity )
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