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Suppose that workers in a steel plant managed to force a significant increase in their wage package. How would the new wage contract be likely to affect the market supply of steel, other things remaining the same? (a) Supply curve will shift to the left. (b) Supply curve will shift to the right.?
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Suppose that workers in a steel plant managed to force a significant i...
Effect of Increase in Wages on Market Supply of Steel
Introduction:
The market supply of steel is determined by various factors such as input prices, technology, and wages. An increase in wages can significantly impact the supply of steel in the market.
Impact on Market Supply of Steel:
(a) Supply curve will shift to the left:
- An increase in wages will increase the cost of production for steel manufacturers.
- As a result, they will produce less steel to maintain their profit margins.
- This will lead to a decrease in the supply of steel in the market.
- The supply curve will shift to the left, indicating a decrease in the quantity of steel supplied at every price level.
(b) Supply curve will shift to the right:
- An increase in wages can also lead to an increase in productivity and efficiency.
- This can result in lower production costs and higher output.
- Steel manufacturers can then supply more steel at every price level.
- The supply curve will shift to the right, indicating an increase in the quantity of steel supplied at every price level.
Conclusion:
The impact of an increase in wages on the market supply of steel depends on various factors such as the cost of production and productivity. The supply curve can either shift to the left or right, depending on the net effect of these factors.
Introduction:
The market supply of steel is determined by various factors such as input prices, technology, and wages. An increase in wages can significantly impact the supply of steel in the market.
Impact on Market Supply of Steel:
(a) Supply curve will shift to the left:
- An increase in wages will increase the cost of production for steel manufacturers.
- As a result, they will produce less steel to maintain their profit margins.
- This will lead to a decrease in the supply of steel in the market.
- The supply curve will shift to the left, indicating a decrease in the quantity of steel supplied at every price level.
(b) Supply curve will shift to the right:
- An increase in wages can also lead to an increase in productivity and efficiency.
- This can result in lower production costs and higher output.
- Steel manufacturers can then supply more steel at every price level.
- The supply curve will shift to the right, indicating an increase in the quantity of steel supplied at every price level.
Conclusion:
The impact of an increase in wages on the market supply of steel depends on various factors such as the cost of production and productivity. The supply curve can either shift to the left or right, depending on the net effect of these factors.
Community Answer
Suppose that workers in a steel plant managed to force a significant i...
Supply curve will shift to the left
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Suppose that workers in a steel plant managed to force a significant increase in their wage package. How would the new wage contract be likely to affect the market supply of steel, other things remaining the same? (a) Supply curve will shift to the left. (b) Supply curve will shift to the right.?
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Suppose that workers in a steel plant managed to force a significant increase in their wage package. How would the new wage contract be likely to affect the market supply of steel, other things remaining the same? (a) Supply curve will shift to the left. (b) Supply curve will shift to the right.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Suppose that workers in a steel plant managed to force a significant increase in their wage package. How would the new wage contract be likely to affect the market supply of steel, other things remaining the same? (a) Supply curve will shift to the left. (b) Supply curve will shift to the right.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Suppose that workers in a steel plant managed to force a significant increase in their wage package. How would the new wage contract be likely to affect the market supply of steel, other things remaining the same? (a) Supply curve will shift to the left. (b) Supply curve will shift to the right.?.
Suppose that workers in a steel plant managed to force a significant increase in their wage package. How would the new wage contract be likely to affect the market supply of steel, other things remaining the same? (a) Supply curve will shift to the left. (b) Supply curve will shift to the right.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Suppose that workers in a steel plant managed to force a significant increase in their wage package. How would the new wage contract be likely to affect the market supply of steel, other things remaining the same? (a) Supply curve will shift to the left. (b) Supply curve will shift to the right.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Suppose that workers in a steel plant managed to force a significant increase in their wage package. How would the new wage contract be likely to affect the market supply of steel, other things remaining the same? (a) Supply curve will shift to the left. (b) Supply curve will shift to the right.?.
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