Question

f the demand for houses increases, the wage of Wage carpenters will ____ and the quantity will ____. Assume bricks and wood are substitute resources. If the price of bricks increases, the price of wood ___ and the quantity ____. If the government removes all regulations for becoming a dentist. The wages for dentists will ____ and the quantity will ___. Assume a company uses two resources, workers and robots, and the MRC for each is $20. Currently the MRP of the last worker hired is $30 and the MRP of the last robot is $10. The company should ____ the number of workers and ____ Quantity of Labor the number of robots.

Answer 1

Answer:

If the demand for houses increases, the wage of Wage carpenters will INCREASE and the quantity will INCREASE. Assume bricks and wood are substitute resources. If the price of bricks increases, the price of wood INCREASE and the quantity WILL INCREASE. If the government removes all regulations for becoming a dentist. The wages for dentists will DECREASE and the quantity will INCREASE. Assume a company uses two resources, workers and robots, and the MRC for each is $20. Currently the MRP of the last worker hired is $30 and the MRP of the last robot is $10. The company should INCREASE the number of workers and DECREASE the number of robots.

Explanation:

If the price of a substitute product increases, the demand of your product will increase. If the demand of a complement product increases, the demand of your product will increase. If regulations are eliminated, the supply of any good or service should increase, shifting the supply curve to the right, increasing quantity and decreasing price. A company will continue to hire labor until marginal cost = marginal revenue.