1/28/18 cumminsm7@myma You are a producer of calculators. Last month, a tornado
ID: 1149104 • Letter: 1
Question
1/28/18 cumminsm7@myma You are a producer of calculators. Last month, a tornado at your factory eliminated 50% of your firm's production capability At the same time, your compensation costs increased by 5% because of an increase in healthcare costs. what is the events? consequence of these Choose one or more: A. The tornado shifts the supply to the left. B. The tornado shifts the supply to the right. C. The tornado does not shift the supply curve. D. The tornado shifts the demand curve to the right. E. The tornado shifts the demand curve to the left. F. The tornado does not shift the demand curve. G. The increase in healthcare costs shifts the supply curve to the right. H. The increase in healthcare costs shifts the supply curve to the left. l. The increase in healthcare costs does not shift the supply curve. J. The increase in healthcare costs shifts the demand curve to the right. K. The increase in healthcare costs shifts the demand curve to the left. L. The increase in healthcare costs doesn't shift the demand curve.Explanation / Answer
A) The tornado shifts the supply to the left.
Decrease in production capabilities means firm is now able to produce less goods. It leads to decrease in the supply of commodity in the market. As supply decreases due to change in factors other than price, supply curve shifts.
F) The tornado does not shift the demand curve.
H) The increase in healthcare costs shifts the supply curve to the left.
Increase in healthcare cost means increase in the cost of production of good for firm. This reduces the supply of commodity in the market. As a result, supply curve shifts leftwards.
L) The increase in healthcare costs doesn't shift the demand curve.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.