Wages for workers producing Walkmans and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in ne year’s market for Walkmans. You predict that the major effect will be that the
A. supply curve for a Walkman will shift rightward.
B. supply curve for a Walkman will shift leftward.
C. demand curve for a Walkman will shift rightward.
D. demand curve for a Walkman will shift leftward
Expert Answer
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Step-by-step
Step 1/1
We have given that wages rates will rise next year and we have to choose correct option regarding Walkmans and similar products as explained below
Explanation:
Option (B) is correct i.e, supply curve for a walkman will shift leftward. As wages rises this will effect on production i.e, production cost will rise for walkman hence suppliers will produce less in next year therefore supply curve will shift leftwards.
Hence, option (b) is correct.
Option (b) is correct i.e, supply curve for walkman will shift leftward.