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You are the owner of a furniture factory.You normally produce 100 pieces of furniture a day because that is how much you can produce given
- You are the owner of a furniture factory.You normally produce 100 pieces of furniture a day because that is how much you can produce given the amount of qualified workers in your town and the amount of reasonably priced wood that you can purchase locally.Then one day you get an order from a large national retail chain who wants to purchase 200 pieces of furniture a day from you.You are hesitant, as you will have to pay higher wages to get some qualified workers to move to your town.You also will need to pay higher prices for wood because you will no longer be able to rely solely on local suppliers and will have to spend more on shipping wood from other towns.But you drive a hard bargain and the retail chain agrees to pay one and a half times your normal price.Does this situation describe a change in quantity supplied?A shift in the supply curve?Both?Neither? Explain your answer.
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