Answered

Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Suppose the government decides that every family should own its own home. To bring this about, the government decides to subsidize the home-construction industry by giving the home-construction companies $10,000 for every house that they build. As a result of this,
a. the supply curve of new houses would shift leftward, since it now costs $10,000 more for builders to produce a house.
b. the demand curve for new houses would shift rightward, since now every family would want to buy a house.
c. the demand curve for new houses would shift leftward.
d. the supply curve of new houses would shift rightward, since builders would be willing to produce and sell more houses at each given price.
e. none of the above
Oil producers expect that oil prices next year will be higher than oil prices this year. As a result, oil producers are most likely to:_____.

Sagot :

eooyibo123

Answer:

d. the supply curve of new houses would shift rightward, since builders would be willing to produce and sell more houses at each given price.

Place more oil on the market this year, shifting the curve rightward.

Explanation:

1. In the given scenario the government is willing to give home-construction companies $10,000 for every house that they build.

This will result in more willingness on the part of the construction companies to build more houses.

More houses built means more income coming in from the government.

Therefore the supply curve of home building will shift to the right.

2. When oil producers expect prices of oil to increase in the next year, there is a need to control oil prices by increasing availability of oil in the market.

Increase in price results from a scarcity of oil. So to mitigate this excess oil is supplied to control price increase.

This action will shift the curve rightward.

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.