5 Changes In The Supply Of Sedans The Following Calculator Shows The Supply Curve For Sedans In An Imaginary Market Fo 1 (30.8 KiB) Viewed 11 times
5 Changes In The Supply Of Sedans The Following Calculator Shows The Supply Curve For Sedans In An Imaginary Market Fo 2 (28.73 KiB) Viewed 11 times
5. Changes in the supply of sedans 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 50 40 s of dollars) 8 Supply Graph Input Tool Supply for Sedans Price of a Sedan. (Thousands of dollars) Quantity Supplied (Sedans per month) SUPPLY SHIFTERS 20 225 A-Z
y Tools Tips Tips U ols ciples of PRICE (Thousands of dollars) 50 40 30 20 10 0 0 pply, and Markets Supply 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) 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 cedan 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 curce because the pay cut makes cars
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