Answer:
c. supply of bicycles will shift to the left.
Explanation:
If the minimum wage is increased, the cost of hiring labour increases and this increases the cost of production. The increase in the cost of production makes producers reduce supply in a bid to cut down cost.
A reduction in supply leads to a leftward shift of the supply curve.
I hope my answer helps you
Answer:
money supply
Explanation:
Monetarists are a branch of new classical economists that, as the name suggests, believe that money has a very important part to play within an economy.They believe that aggregate expenditures in the economy are influenced by the market rate of interest, and therefore money can affect the level of output in the short run economy.However, they further believe that money influences the long run unemployment in the economy. If monetary policies are used to increase aggregate demand, it is thought that this use of additional money may cause a short term boost in output, but will ultimately lead to inflation in the economy.
So the answer is money supply
Answer:
This will create shortage and people will sell milk in black market at higher price.
Explanation:
Wildfires and mudslides have closed the highways. This created greater demand and short supply.
The equilibrium price increased to $7.
But the government imposed a price ceiling of $4.
At this binding price ceiling, the quantity demanded is more than quantity supplied.
This high demand would cause the suppliers to sell milk in the black market at a higher price.
