Question

You are a producer of cold medicine. Last month, a tornado at your factory eliminated 50% of your firm’s production capability. At the same time, your compensation costs increased by 5% because of an increase in healthcare costs. What is the consequence of these events?

Answer 1

Choose one or more:

A.The flood shifts the supply to the left.

B.The flood shifts the supply to the right.

C.The flood does not shift the supply curve.

D.The flood shifts the demand curve to the right.

E.The flood shifts the demand curve to the left.

F.The flood does not shift the demand curve.

G. The increase in healthcare costs shifts the supply curve to the right.

H.The increase in healthcare costs shifts the supply curve to the left.

I.The increase in healthcare costs does not shift the supply curve.

J.The increase in healthcare costs shifts the demand curve to the right.

K.The increase in healthcare costs shifts the demand curve to the left.

L. The increase in healthcare costs doesn't shift the demand curve

Answer: (A).The flood shifts the supply to the left.

(F)The flood does not shift the demand curve.

(H)The increase in healthcare costs shifts the supply curve to the left.

(L) The increase in healthcare costs doesn't shift the demand curve

Step-by-step explanation:

these statements holds true because a decrease in supply will shift supply to the left, and also increase in supply cost will shift supply left. The demand doesn't change