Part 1 Identify the elements of scarcity, choice, and opportunity cost in each of the following: 1. The manager of an automobile assembly plant is considering whether to produce cars or sport utility vehicles (SUVs) next month. Assume that the quantities of labor and other materials required would be the same for either type of production. 2. A young man who went to work as a nurses’ aide after graduating from high school leaves his job to go to college, where he will obtain training as a registered nurse.
Part 1 Identify the elements of scarcity, choice, and
1. The manager of an automobile assembly plant is considering whether to produce cars or sport utility vehicles (SUVs) next month. Assume that the quantities of labor and other materials required would be the same for either type of production.
2. A young man who went to work as a nurses’ aide after graduating from high school leaves his job to go to college, where he will obtain training as a registered nurse.
If all other things are unchanged, what happens to the supply curve for car rentals if there is (a) an increase in wages paid to car rental staff, (b) an increase in the price of car rentals, or (c) an increase in the number of car rental stores? Draw a graph that shows what happens to the supply curve in each circumstance.
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