The following calculator shows the supply curve for sedans in an imaginary market. Assume that all sedans are identical and sell for the same price. Two factors that affect the supply of sedans are the technology-the speed with which auto-manufacturing robots can fasten bolts, or "robot speed"- and the wage rate that auto manufacturers pay their employees. Initially, the graph shows the supply curve when robots can fasten 2,500 bolts per hour and autoworkers earn $35 per hour. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in the grey field will change accordingly. Graph Input Tool I Price of a sedan (Thousands of dollars) 24 45 Quantity supplied (Sedans per month) 40 405 Supply Supply Shifters Robot Speed (Bolts per hour) 2500 Autoworker wage (Dollars per hour) 35 O 100 200 300 400 500 000 700 800 900 QUANTITY (Sedans per month) Suppose that the price of sedans in the previous graph increases from $24,000 to $29,000 per car. This would cause the of sedans to increase, which is reflected on the graph by a v the supply curve. Suppose a technological improvement increases the speed with which robots can attach bolts to cars from 2,500 bolts per hour to 3,000 bolts per hour. Assuming that the wage rate remains the same, this would cause a v the supply curve. This is because the technological improvement makes cars (siejOp 10 SpUesnou i) 3DINd
The following calculator shows the supply curve for sedans in an imaginary market. Assume that all sedans are identical and sell for the same price. Two factors that affect the supply of sedans are the technology-the speed with which auto-manufacturing robots can fasten bolts, or "robot speed"- and the wage rate that auto manufacturers pay their employees. Initially, the graph shows the supply curve when robots can fasten 2,500 bolts per hour and autoworkers earn $35 per hour. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in the grey field will change accordingly. Graph Input Tool I Price of a sedan (Thousands of dollars) 24 45 Quantity supplied (Sedans per month) 40 405 Supply Supply Shifters Robot Speed (Bolts per hour) 2500 Autoworker wage (Dollars per hour) 35 O 100 200 300 400 500 000 700 800 900 QUANTITY (Sedans per month) Suppose that the price of sedans in the previous graph increases from $24,000 to $29,000 per car. This would cause the of sedans to increase, which is reflected on the graph by a v the supply curve. Suppose a technological improvement increases the speed with which robots can attach bolts to cars from 2,500 bolts per hour to 3,000 bolts per hour. Assuming that the wage rate remains the same, this would cause a v the supply curve. This is because the technological improvement makes cars (siejOp 10 SpUesnou i) 3DINd
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following calculator shows the supply curve for sedans in an imaginary market. Assume that all sedans are identical and sell for the same price.
Two factors that affect the supply of sedans are the technology-the speed with which auto-manufacturing robots can fasten bolts, or "robot speed"-
and the wage rate that auto manufacturers pay their employees. Initially, the graph shows the supply curve when robots can fasten 2,500 bolts per
hour and autoworkers earn $35 per hour.
Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph.
Note: Once you enter a value in a white field, the graph and any corresponding amounts in the grey field will change accordingly.
Graph Input Tool
I Price of a sedan
(Thousands of
dollars)
24
45
Quantity supplied
(Sedans per
month)
40
405
Supply
Supply Shifters
Robot Speed
(Bolts per hour)
2500
Autoworker wage
(Dollars per hour)
35
O 100 200 300 400 500 000 700 800 900
QUANTITY (Sedans per month)
Suppose that the price of sedans in the previous graph increases from $24,000 to $29,000 per car. This would cause the
of
sedans to increase, which is reflected on the graph by a
v the supply curve.
Suppose a technological improvement increases the speed with which robots can attach bolts to cars from 2,500 bolts per hour to 3,000 bolts per
hour. Assuming that the wage rate remains the same, this would cause a
v the supply curve. This is because the
technological improvement makes cars
(siejOp 10 SpUesnou i) 3DINd
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