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 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 fasten 2,500 bolts per hour and autoworkers earn $25 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 each grey field will change accordingly. PRICE (Thousands of dollars) 50 40 20 10 0 0 Supply 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) Graph Input Tool Supply for Sedans Price of a Sedan (Thousands of dollars) Suppose the workers' union accepts a pay cut. This causes a Quantity Supplied (Sedans per month) SUPPLY SHIFTERS Robot Speed (Bolts per hour) Autoworker Wage (Dollars per hour) 20 225 2500 25 Consider the previous graph. Suppose that the price of a sedan increases from $20,000 to $25,000. This would cause the sedans to increase, which is reflected on the graph by a the supply curve. the supply curve because the pay cut makes cars
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 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 fasten 2,500 bolts per hour and autoworkers earn $25 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 each grey field will change accordingly. PRICE (Thousands of dollars) 50 40 20 10 0 0 Supply 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) Graph Input Tool Supply for Sedans Price of a Sedan (Thousands of dollars) Suppose the workers' union accepts a pay cut. This causes a Quantity Supplied (Sedans per month) SUPPLY SHIFTERS Robot Speed (Bolts per hour) Autoworker Wage (Dollars per hour) 20 225 2500 25 Consider the previous graph. Suppose that the price of a sedan increases from $20,000 to $25,000. This would cause the sedans to increase, which is reflected on the graph by a the supply curve. the supply curve because the pay cut makes cars
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text: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 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 fasten 2,500 bolts per hour and autoworkers earn $25 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 each grey field will change accordingly.
PRICE (Thousands of dollars)
50
40
30
20
10
0
0
Supply
100 200 300 400 500 600 700 800 900
QUANTITY (Sedans per month)
Graph Input Tool
Supply for Sedans
Price of a Sedan
(Thousands of
dollars)
Suppose the workers' union accepts a pay cut. This causes a
Quantity Supplied
(Sedans per
month)
SUPPLY SHIFTERS
Robot Speed
(Bolts per hour)
Autoworker Wage
(Dollars per hour)
20
225
2500
25
Consider the previous graph. Suppose that the price of a sedan increases from $20,000 to $25,000. This would cause the
sedans to increase, which is reflected on the graph by a
the supply curve.
?
the supply curve because the pay cut makes cars
of
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