Answered

Looking for reliable answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Find reliable answers to your questions from a wide community of knowledgeable experts on our user-friendly Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Suppose a group of competitive producers can produce two different goods (shovels and hammers) with basically the same resources. Most are currently producing many shovels and fewer hammers. The demand for hammers increases. What is likely to happen in the market for shovels

Sagot :

Answer:

The demand for hammers increases is likely to happen in the market for shovels is described below in complete details.

Explanation:

The equilibrium capacity will decline; the equilibrium price will decline.

Reason - The equilibrium capacity will decline as the market for shovels drop while the supply persists steadfast. And, the equilibrium price will also decline as there is a surplus capacity of shovels with an undersized market.

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.