The following graph 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 rob 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 Supply 0 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) Graph Input Tool Supply for Sedans Price of a Sedan (Thousands of dollars) Quantity Supplied (Sedans per month) SUPPLY SHIFTERS Robot Speed (Bolts per hour) Autoworker Wage (Dollars per hour) 18 135 2500 25 Suppose that the price of a sedan increases from $18,000 to $23,000. This would cause the quantity supplied of sedans to reflected on the graph by a the supply curve. Following a technological decline-for example, a decrease in the speed with which robots can attach bolts to cars-there is a the supply curve because the technological decline makes cars ? I which
The following graph 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 rob 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 Supply 0 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) Graph Input Tool Supply for Sedans Price of a Sedan (Thousands of dollars) Quantity Supplied (Sedans per month) SUPPLY SHIFTERS Robot Speed (Bolts per hour) Autoworker Wage (Dollars per hour) 18 135 2500 25 Suppose that the price of a sedan increases from $18,000 to $23,000. This would cause the quantity supplied of sedans to reflected on the graph by a the supply curve. Following a technological decline-for example, a decrease in the speed with which robots can attach bolts to cars-there is a the supply curve because the technological decline makes cars ? I which
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following graph 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
O
Supply
0 100 200 300 400 500 600 700 800 900
QUANTITY (Sedans per month)
Graph Input Tool
Supply for Sedans
Price of a Sedan
(Thousands of
dollars)
Quantity Supplied
(Sedans per
month)
SUPPLY SHIFTERS
Robot Speed
(Bolts per hour)
Autoworker Wage
(Dollars per hour)
18
135
2500
25
Suppose that the price of a sedan increases from $18,000 to $23,000. This would cause the quantity supplied of sedans to
reflected on the graph by a
the supply curve.
Following a technological decline-for example, a decrease in the speed with which robots can attach bolts to cars-there is a
the supply curve because the technological decline makes cars
?
which is
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