Application Exercise 3d: Changes in supply
Cars | decrease | The average costs of production for the manufacturers will rise because more money is required to pay for operating costs |
Iceberg lettuces | decrease | the physical supply of bananas decreases due to the cyclone (and the costs of producing the crop have risen) |
iPads | decrease | fewer ipads can be produced per hour worked which raises the per-unit costs of production |
Solar power panels | increase | the costs of production for manufacturers will fall given that the government is effectively paying part of the business’ costs |
Minerals | decrease | the costs of production for miners will rise as more tax is paid to the government |
Taxi service | decrease | the costs of production for taxi operators will rise given the additional costs associated with training and education of its human resources |
Cattle | decrease | the costs of production for abattoirs will rise given the additional costs associated with the compliance of government regulations |
Luxury cars | decrease | the costs of production for manufacturers will rise given the additional costs associated with the payment of the LCT |
Education | decrease | the costs of production for schools will rise given the additional costs associated with the employment of staff |
coal-fired electricity | increase | the costs of production for energy companies will fall given the lower tax costs |
Tourism | decrease | tourist areas like the great barrier reef will attract fewer tourists due to damaged created by excessive C02 emissions |
Minerals | increase | the costs of production for mines will fall over time as productivity improves |
Uber X ride sharing services | increase | the costs of production for the industry will fall given the lower costs associated with the compliance of govt regulations |
Eggs | decrease | the costs of production for egg producers/farmers will rise given the higher costs of attaining healthy hens and the decline in productivity at farms |
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