If there was a baby boom of Oompa Loompas ready to work for free, what will...

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If there was a baby boom of Oompa Loompas ready to work for free, what will...

If there was a baby boom of Oompa Loompas ready to work for free, what will happen to the Willy Wonka chocolate market? A few things to think about:

Has this affected supply or demand of Willy Wonka Chocolate?

What has happened to the price of Willy Wonka chocolate?

Please justify your answer by graphing the change in either supply or demand, as well as the change in price.

Show all equations and work.

business finance

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Answer 1

Answer #1

As lots of employees are available for free, production will go on increasing.

But there will be no sales as people don't have enough money to buy products.

So the supply in market will increase but demand will decrease and thus we can say the prices of the winki wonka choclate will fall.

There is a inverse relation between supply and demand.

Inverse relation between Supply and price. As supply increases prices fall.

I hope this has answered all your questions.

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Answer 2

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