1. Explain whether each of the following events represents (i) a shift of the supply curve or...
Question:
1. Explain whether each of the following events represents (i) a shift of the supply curve or (ii) a movement along the supply curve.
a. More homeowners put their houses up for sale during a real estate boom that causes house prices to rise.
b. Many strawberry farmers open temporary roadside stands during harvest season, even though prices are usually low at that time.
c. Immediately after the school year begins, fast -food chains must raise wages, which represent the price of labor, to attract workers.
d. Many construction workers temporarily move to areas that have suffered hurricane damage, lured by higher wages.
e. Since new technologies have made it possible to build larger cruise ships (which are cheaper to run per passenger), Caribbean cruise lines have offered more cabins, at lower prices, than before.
Step by Step Answer:
Essentials Of Economics
ISBN: 9781429218290
2nd Edition
Authors: Paul Krugman, Robin Wells, Kathryn Graddy