1. Which graph depicts the impact of the change? Note: Suppose the workers in th
ID: 1157481 • Letter: 1
Question
1. Which graph depicts the impact of the change? Note: Suppose the workers in the wine industry get unionized and their union negotiates a much higher wage rate that wine producers agree to pay thier workers.
2. What is the impact on P and what is the impact on Q? (increase, decrease or not change)
3. Will this effect supply or demand?
4. Again consider the market for wine. suppose there is a decrease in the price of beer, a good viewed by consumers as a substitute for wine. In the context of a supply and demand, identify which graph depicts the impact of this change(ignore the change in 1,2,3 questions), the initial equilibrum is at point A. No explanation is required, but you have to clearly specify if this will affect supply or demand and how this change will affect the P and Q. The questions are? graph depicts the impact of the change? 2, what is the impact on P,Q? Will this affect supply or demand.
5. Assume that the changes above occur simulataneously. what is the overall impact on the equilibrium price and the equilibrium quantity of wine. ?no need draw graph).graph depicts the impact of the change? 2, what is the impact on P,Q? Will this affect supply or demand.
37 seconds of the the status. Which Panel C Panel Fanel A Panel D Panel E Panel F nd Subnit to save and submit. Click Save All Answers to save allExplanation / Answer
1. The change is not temporary, and would affect only the supply curve, not the demand curve. If the union negotiates a higher wage than are the suppliers are willing to pay, then there would be an excess supply of labor, and hence, the labor employed would decrease. That would decrease the labor, and also would decrease the production. Hence, at the same price there would be less amount the producers would be willing to supply. Thus, the supply curve would shift to left. Hence, the correct option is
Only in Panel B, the supply curve shifts to left, and the demand is unchanged.
2. As can be seen, Price increases and the Quantity decreases.
3. The union negotiation of higer wage is related to the producer's side, and hence, would affect only supply, and not demand.
4. For beer being a substitute for wine, decrease in price of beer would mean that the demand for wine would decrease. As people would be more tempted to buy beer, their demand for wine would be lessen.
5. Supposing that both changes occurs simultaneously, the demand would decrease and so will be the supply. Both curve would shift left.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.