Steel mill wage costs increase by 18 percent over a year. What is the likely economic effect on the market for steel?
A. There is an increase in the cost of producing steel, which shifts the supply curve of steel to the right, thereby increasing the price of steel.
B. There is an increase in the cost of producing steel, which shifts the supply curve of steel to the left, thereby increasing the price of steel.
C. There is a decrease in the cost of producing steel, which shifts the supply curve of steel to the left, thereby increasing the price of steel.
D. The increase in wage costs will shift the demand curve for steel to the left, increasing the cost of steel.
Answer:B
Steel mill wage costs increase by 18 percent over a year. What is the likely economic effect on the market for steel?
A. There is an increase in the cost of producing steel, which shifts the supply curve of steel to the right, thereby increasing the price of steel. B. There is an increase in the cost of producing steel, which shifts the supply curve of steel to the left, thereby increasing the price of steel. C. There is a decrease in the cost of producing steel, which shifts the supply curve of steel to the left, thereby increasing the price of steel. D. The increase in wage costs will shift the demand curve for steel to the left, increasing the cost of steel.
Explanation: 23. A more efficient means of processing algae to produce an anticancer drug is discovered. As a result, the supply curve for the drug will: