Question

The Ocoromowoc Tool Company manadures wrenches its plant in Wisconsin and the companys demand and supply curves are shown to
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer)

Price($) Quantity

As the flood destroys the warehouse, the quantity of wrenches produced would decrease which would lead to the decrease in the supply of wrenches.

The supply curve, as a result, would shift leftwards.

The new equilibrium is at point E', as we can see in the diagram.At this point, the equilibrium price has increased to P' and equilibrium quantity has decreased to Q'.

Add a comment
Know the answer?
Add Answer to:
The Ocoromowoc Tool Company manadures wrenches its plant in Wisconsin and the companys demand and supply...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Using Demand and Supply Analysis. Use the line drawing tool to show the effects of an...

    Using Demand and Supply Analysis. Use the line drawing tool to show the effects of an increase in Japanese interest rates on the exchange rate between the British pound and the Japanese yen. The Market for Pounds Yen per Pound O o The vertical axis will be yen per pound, 7 Draw and properly label a single line. Carefully follow the instructions above, and only draw the required object. Pounds

  • Graph the supply and demand schedules for cappuchino…. please let me know what coordinates exactly. Suppose...

    Graph the supply and demand schedules for cappuchino…. please let me know what coordinates exactly. Suppose the market demand for a cup of cappuccino is given by Market for Cappuccino O 24 4P 10 and the market supply for a cup of cappuccino is given by Qs- 8P- 12, where P- price (per cup). Graph the supply and demand schedules for cappuccino. 1.) Using the line drawing tool, draw the demand curve for cappuccino. Label your line D 2.) Using...

  • The demand for money curve shown in the accompanying figure reflects a constraint on the interest...

    The demand for money curve shown in the accompanying figure reflects a constraint on the interest rate known as the zero lower bound raint Now modify the figure on the right to illustrat creates for monetary policy. Do this by addin follows: zero lower bound lowest sustainable rate 1.) Using the line drawing tool, draw a supply "normal" situation in the financial market. Lal minimum legal floor 2.) Using the line drawing tool, draw a second supply of money curve...

  • Please help me with my economics homework? 20. Market for Telephone Calls Anna is separated from...

    Please help me with my economics homework? 20. Market for Telephone Calls Anna is separated from her boyfriend, John, while she studies economics and he goes to art school. The government thinks that Flash Telecommunications, Anna's phone company, needs subsidization, so a price floor4 is instituted at $16 per minute Price per minute (S) Quantity Supplied per Month 28 12 Price per Minute Quantity Demanded per Month 14 $18 12 28 Use the data in the table above to draw...

  • The diagram to the right is a basic supply and demand graph. Economists use it to...

    The diagram to the right is a basic supply and demand graph. Economists use it to analyze equilibrium price and quantity in a market When price equals $6, a surplus occurs 1.) Using the line drawing tool, draw a horizontal line from the $6 value on the vertical axis to represent the surplus. Label this line Price 2) Using the point drawing tool, locate quantity demanded (label the point P) and quantity supplied (label the point P2) at this price...

  • The graph on the right shows a labor supply and labor demand curve. Illustrate the impact...

    The graph on the right shows a labor supply and labor demand curve. Illustrate the impact of an efficiency wage that pushes the wage to $9 per hour. 1.) Using the point drawing tool, place a point on the graph that illustrates the market-clearing wage and quantity of labor. Label your point Market clearing.' 2.) Using the point drawing tool, place a point on the graph that illustrates the quantity of labor demanded under an efficiency wage that results in...

  • Please help me with my Econ homework? 13. The demand schedule given below illustrates the guantity...

    Please help me with my Econ homework? 13. The demand schedule given below illustrates the guantity demanded 0 by two individual consumers in the market for hot dogs. Both Larry and Harry are consumers of hot dogs and make up the entire market Hot Dogs 2.00 Price Quantity Quantity Total Market per Demanded Demanded Demand Hot Dog by Larry 10 25 by Harry 15 30 $1.80 0.20 1.) Using the line drawing tool, draw a demand curve'" for each individual....

  • The graph on the right shows the demand for and supply of labor in a market...

    The graph on the right shows the demand for and supply of labor in a market with an equilibrium wage rate of $9 per hour. Labor supply Show the impact on the graph if a minimum wage of $11 per hour is enacted. 1.) Using the point drawing tool, plot the point that illustrates the quantity of labor demanded when the minimum wage is set at $11 per hour. Label your point 'A.' 2.) Using the point drawing tool, plot...

  • JUAL LACICISU 3.4 Consider the demand function for processed pork in Canada. Question Q-630.00-37p.20 3. The...

    JUAL LACICISU 3.4 Consider the demand function for processed pork in Canada. Question Q-630.00-37p.20 3. The supply function for processed pork in Canada is 000 p is the price of pork Qis the quantity of pork demanded masured in a peryeart 19.00 se - As the price of bof 54 per kg is the price of chicken per kg Y the income of consumers = $12.500 the price of a log - $1.50 per kg Sve for the equilibrium price...

  • In the market for televisions, the price of a television falls and nothing else changes. Price...

    In the market for televisions, the price of a television falls and nothing else changes. Price (dollars per television) Show the effect of this change o os Choose between the following Use the single arrow tool to draw an arrow on the demand curve showing the direction of movement along the line OR Use the line tool to draw a new demand curve Only one of the effects is correct, and you must determine which is the appropriate one to...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT