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Changes in Quality Level Using the two-panel graph in Figure 14–2 as a model, show the effects of two changes in the housing market. a. An increase in price [increases, decreases] the slope of the _____ curve and shifts the _____curve [upward, downward]. The profi t-maximizing quality [increases, decreases]. b. An increase in the wages of housing-maintenance workers (plumbers, roofers, painters, carpenters) [increases, decreases] the slope of the _____ curve and shifts the _____ curve [upward, downward]. The profi t-maximizing quality [increases, decreases].
Chapter 14, Problem 3(choose chapter or problem)
Changes in Quality Level Using the two-panel graph in Figure 14–2 as a model, show the effects of two changes in the housing market.
a. An increase in price [increases, decreases] the slope of the _____ curve and shifts the _____curve [upward, downward]. The profi t-maximizing quality [increases, decreases].
b. An increase in the wages of housing-maintenance workers (plumbers, roofers, painters, carpenters) [increases, decreases] the slope of the _____ curve and shifts the _____ curve [upward, downward]. The profi t-maximizing quality [increases, decreases].
Questions & Answers
QUESTION:
Changes in Quality Level Using the two-panel graph in Figure 14–2 as a model, show the effects of two changes in the housing market.
a. An increase in price [increases, decreases] the slope of the _____ curve and shifts the _____curve [upward, downward]. The profi t-maximizing quality [increases, decreases].
b. An increase in the wages of housing-maintenance workers (plumbers, roofers, painters, carpenters) [increases, decreases] the slope of the _____ curve and shifts the _____ curve [upward, downward]. The profi t-maximizing quality [increases, decreases].
ANSWER:Step 1 of 2
Given data:
Changes in Quality Level Using the two-panel graph in Figure 14–2 as a model, show the effects of two changes in the housing market.
a. An increase in price [increases, decreases] the slope of the _____ curve and shifts the _____curve [upward, downward]. The profit-maximizing quality [increases, decreases].
b. An increase in the wages of housing-maintenance workers (plumbers, roofers, painters, carpenters) [increases, decreases] the slope of the _____ curve and shifts the _____ curve [upward, downward]. The profit-maximizing quality [increases, decreases].