10. Critical analysis Q13 What conditions are necessary for the invisible hand to work well? Check all that apply. [:1 Low taxes [:1 Competitive market conditions C] Well-defined and secure property rights C] Low resource prices The following calculator shows the supply curve for sedans in an imaginary market. Assume that all sedans are identical and sell for the same price. Two factors that affect the supply of sedans are the technologythe speed with which automanufacturing robots can fasten bolts, or "robot speed" and the wage rate that auto manufacturers pay their employees. Initially, the graph shows the supply curve when robots can fasten 1,500 bolts per hour and autoworkers earn $25 per hour. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white eld, the graph and any corresponding amounts in the grey field will change accordingly. Graph Input Tool 6') so | Price of a sedan 45 (Thousands of 40 dollars) E Quantity supplied % 35 suPply (Sedans per 495 3 month) 0 30 g + I: g 25 I Supply Shifters E 20 I v I Robot Speed 3 15 | (Bolts per hour) 1500 E l 10 Autoworker wa e n' | (Dollars per mgr) 5 I o i | | | I | | | i o 100 200 300 400 5m and 700 800 900 QUANTITY (Sedans per month) Suppose that the price of sedans in the previous graph increases from $26,000 to $31,000 per car. This would cause the v of sedans to increase, which is reflected on the graph by a v the supply curve. Suppose the Workers' Union negotiates a pay raise from $25 per hour to $30 per hour. Assuming that the robot speed re quantity supplied . would sewed A _ us; been\" A,,,,,. wage as LAAAHAA u\" 4A,, ,, s Suppose that the price of sedans in the previous graph increases from $26,000 to $31,000 per car. This would cause the v of sedans to increase, which is reflected on the graph by a v the supply curve. 0 per hour. Assuming that the robot speed remains the same, this would cause a V the supply movement along e the pay raise makes cars V . Continue wilhoul saving Suppose the Workers' Union negotiates a pay raise from - Suppose sedans t Suppose cause a rightward shi of rightward movement along leftward movement along leftward shift of previous graph increases from $26,000 to $31,000 per car. This would cause the v of n the graph by a v the supply curve. l a pay raise from $25 per hour to $30 per hour. Assuming that the robot speed remains the same, this would v the supply curve. This is because the pay raise makes cars 7 . more expensive to build less e en ' t 1 Suppose that the price of sedans in the previous graph increases from $26,000 to $31,000 per car. This Xp suve 0 ml d sedans to increase, which is reflected on the graph by a v the supply curve. more fashionable Suppose the Workers' Union negotiates a pay raise from $25 per hour to $30 per hour. Assuming that t same, this would cause a v the supply curve. This is because the pay raise makes cars v . Grade It Now Save & Continue Continue without saving