Question

Suppose that people who work in the paint industry face a great risk of developing an incurable disease. A medical breakthrough that eliminates the risk will most likely cause which of the following shifts in the supply and demand curves for workers in the paint industry?

(A) Supply Curve = Shift Right ; Demand Curve = No Shift

(B) Supply Curve = Shift Left ; Demand Curve = No Shift

(C) Supply Curve = Shift Left ; Demand Curve = Shift Left

(D) Supply Curve = Shift Left ; Demand Curve = Shift Right

Answer 1

(A) Supply Curve = Shift Right; Demand Curve = No Shift

Step-by-step explanation:

Anything that increases the cost of production -- increased materials cost, higher taxes and higher labor costs

Answer 2

A) Supply Curve = Shift Right ; Demand Curve = No Shift

Step-by-step explanation:

As a result of the medical breakthrough, more people would be willing to work in the paint industry. This would lead to an increase in supply of workers. Increase in supply is shown as a rightward shift of the supply curve.

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