Question

Chrome File Edit View History Bookmarks People Tab Window Help * $ 32%D Thu Jul 30 12:23 PM Va PowerPoint Oral Presentation X To register in Mindtap please X MindTap - Cengage Learning + Ang.cengage.com static/nb/uevo/index.html?deploymentid=683265222669736435158970354&SBN 9781337914413&nbid=1786217&snapshotid=1 CENGAGE MINDTAP - Aplia Homework: Demand, Supply, and Markets 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. Graph Input Tool Supply for Sedans 20 40 Supply Price of a Sedan (Thousands of dolar) Quantity Supplied (Seda per month 225 (Thousands of dollars) 30 SUPPLY SHIFTERS 20 Robot Speed 25.00

Answer 1

the consider the previous graph. Suppose that price of Sed an increases from $20,000 to $25,000. This would cause the quantity supplied of sedans to increase, which is reflected on the graph by a movement along the supply corne. Following Following a technological improvem ement-for example, an in the speed or with which robots increase in can attach bolts of to cars - there is a rightward shift of the supply curve because the technological improvement makes cars less expensive to build Reasons: Increase in price results in increase in quantity supplied. Techo edimological advancement leads to shift in supply corne (sightwards) because the produetion cost decreases per sedan 1/1