Suppose you are a producer of friendship bracelets. How would the following events affect your/the market's willingness and ability supply friendships bracelets? Match the event on the left to the proper determinant on the right.
1. The price of friendship bracelets decreases.
2. The school requires you to put a warning label on each bracelet. (may lose blood circulation)
3. The cost of labor to produce bracelets decreases.
4. Many more students decide to sell friendship bracelets.
5. You improve the education of your workers and they make more bracelets in the same time as before.
a. This is a change in costs due to government intervention.
b. This is a change in cost of inputs.
c. This does not affect supply.
d. This is a change in the number of suppliers.
e. This is a change in the quality of inputs.
Now, using the information from the previous question, how will those same changes affect the overall supply of friendship bracelets?
6. You improve the education of your workers and they make more bracelets in the same time as before
7. The price of friendship bracelets decreases.
8. The cost of labor to produce bracelets decreases.
9. The school requires you to put a warning label on each bracelet. (may lose blood circulation)
10. Many more students decide to sell friendship bracelets.
a. no change in supply
b. increase supply
c. decrease supply
1. c
2. e
3. b
4. d
5. a
6. b
7. b
8. c
9. a
10. b
I don't know if these are right or wrong. Could you please help me out
What grade did you get on this assignment?
Let's go through each question and determine the correct match for the events affecting willingness and ability to supply friendship bracelets:
1. The price of friendship bracelets decreases.
This would affect the market's willingness to supply friendship bracelets, so the appropriate determinant on the right would be "c. This does not affect supply."
2. The school requires you to put a warning label on each bracelet (may lose blood circulation).
This event does not affect the market's willingness or ability to supply friendship bracelets; it is more of a regulatory requirement. So the suitable determinant on the right would be "c. This does not affect supply."
3. The cost of labor to produce bracelets decreases.
A decrease in the cost of labor would positively impact the market's ability to supply friendship bracelets, as it reduces production costs. Thus, the correct determinant on the right would be "b. This is a change in the cost of inputs."
4. Many more students decide to sell friendship bracelets.
An increase in the number of suppliers, as more students decide to sell friendship bracelets, would affect the market's ability to supply friendship bracelets. Therefore, the proper determinant on the right would be "d. This is a change in the number of suppliers."
5. You improve the education of your workers, and they make more bracelets in the same time as before.
Improving the education of workers increases their productivity, allowing them to produce more bracelets in the same amount of time. This directly affects the market's ability to supply friendship bracelets. Hence, the correct determinant on the right would be "b. This is a change in the quality of inputs."
Now, let's determine how these changes would affect the overall supply of friendship bracelets:
6. You improve the education of your workers, and they make more bracelets in the same time as before.
Improving the education of workers and increasing their productivity would lead to an increase in the overall supply of friendship bracelets. Hence, the appropriate answer would be "b. increase supply."
7. The price of friendship bracelets decreases.
A decrease in the price of friendship bracelets does not directly impact the overall supply, so the suitable answer would be "a. no change in supply."
8. The cost of labor to produce bracelets decreases.
A decrease in the cost of labor would reduce production costs, allowing for a higher supply of friendship bracelets. Therefore, the correct answer would be "c. increase supply."
9. The school requires you to put a warning label on each bracelet (may lose blood circulation).
The school's requirement for a warning label does not directly affect the overall supply of friendship bracelets. Hence, the appropriate answer would be "a. no change in supply."
10. Many more students decide to sell friendship bracelets.
An increase in the number of suppliers (students selling friendship bracelets) would result in a higher overall supply. Therefore, the correct answer would be "b. increase supply."
So, the correct matches and their corresponding effects on overall supply are as follows:
1. The price of friendship bracelets decreases -> c. This does not affect supply.
2. The school requires you to put a warning label on each bracelet (may lose blood circulation) -> c. This does not affect supply.
3. The cost of labor to produce bracelets decreases -> b. Increase supply.
4. Many more students decide to sell friendship bracelets -> d. Increase supply.
5. You improve the education of your workers, and they make more bracelets in the same time as before -> b. Increase supply.
I hope this clarifies the correct answers for you!
Your answers are mostly correct! Here is the correct matching of events to determinants:
1. The price of friendship bracelets decreases. - d. This is a change in the number of suppliers.
2. The school requires you to put a warning label on each bracelet. (may lose blood circulation) - e. This is a change in the quality of inputs.
3. The cost of labor to produce bracelets decreases. - b. This is a change in the cost of inputs.
4. Many more students decide to sell friendship bracelets. - d. This is a change in the number of suppliers.
5. You improve the education of your workers and they make more bracelets in the same time as before. - c. This does not affect supply.
Now, let's match the changes to the overall supply of friendship bracelets:
6. You improve the education of your workers and they make more bracelets in the same time as before - b. increase supply
7. The price of friendship bracelets decreases - b. increase supply (lower prices incentivize producers to increase supply)
8. The cost of labor to produce bracelets decreases - c. no change in supply (lower costs may increase profitability, but not necessarily overall supply)
9. The school requires you to put a warning label on each bracelet (may lose blood circulation) - a. no change in supply (this is a regulatory requirement, not directly related to supply)
10. Many more students decide to sell friendship bracelets - b. increase supply (more suppliers entering the market)
Great job!