Question

A state program has increased the availability of vocational education opportunities for welders. As such, the welding workforce is

expected to be far more educated in the skills and concepts pertaining to its job within the next year. At the same time, the price of
welding tools has recently increased. What is the anticipated impact on the supply of welding?

Answer 1

Answer: It is impossible to tell.

Explanation: The increases price of welding tools is an increase in input costs for production that results in a decrease in supply. The improvement in education and skills of welders will likely increase productivity and subsequently increase supply. Give the counteracting effects on the supply of welding, it is impossible to tell what the impact on the supply of welding will be without further information.