Producers of tablet computers will be able to lower the wage rate that they pay to their workers. You are asked to predict the effects on the supply of tablet computers, and the price of a tablet computer. You predict that the supply curve shifts

Question

Quizplus · Accepted Answer

If the producers of tablet computers lower the wage rate paid to their workers, their production costs will decrease. This will result in an increase in the supply of tablet computers as they can produce more at a lower cost. Therefore, the supply curve shifts rightward. This will lead to a decrease in the price of tablet computers as producers will be willing to sell more at a lower price in order to compete with each other.

Producers of Tablet Computers Will Be Able to Lower the Wage