Ask Question
BusinessBusiness
20 August, 23:05

In the market for skateboards, suppose the price of scooters (a substitute) falls slightly in price, while the cost of labor to produce skateboards increases significantly. what is likely to happen to the equilibrium price and quantity?

+5
Answers (1)
  1. 20 August, 23:51
    0
    In this case, the equilibrium price and quantity will go up.

    If the cost of substitutes go down, that means that consumers will be less likely to purchase your products for the same price.

    Also, if the price of labor goes up, the the producer will likely charge a higher price as well or their marginal profit will decrease, meaning they will need to sell more units.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In the market for skateboards, suppose the price of scooters (a substitute) falls slightly in price, while the cost of labor to produce ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A B C Cash provided (used) by operating activities $ 64,000 $ 60,000 $ (24,000) Cash provided (used) by investing activities (26,000) (35,000) 27,000 Cash provided (used) by financing activities (6,000) 0 24,000 Net increase (decrease) in cash $
Answers (1)
Emporia Corporation is a lessee with a capital lease. The asset is recorded at $810,000 and has an economic life of 8 years. The lease term is 5 years.
Answers (1)
Which of the following is an example of a transnational organization? 1. a group that influence the government concerning a specifc topic 2. a group that promotes mediation or conflict resolution between nations 3.
Answers (1)
Global Communications has a 7 percent, semiannual coupon bond outstanding with a current market price of $1,023.46. The bond has a par value of $1,000 and a yield to maturity of 6.72 percent. How many years is it until this bond matures?
Answers (1)
Rita contracts to work for Social Media Corporation (SMC) during April for $4,500. On March 31, SMC cancels the contract. Rita declines a job of a different type and rank with Tech Talk, Inc., which would have paid $3,500.
Answers (1)
New Questions in Business
Zero Corp. suffered a loss having a material effect on its financial statements as a result of a customer's bankruptcy that rendered a trade receivable uncollectible.
Answers (2)
Upward communication among organizational members at the same level can facilitate task coordination, provide means of sharing information, provide formal channel of communication for problem solving, and facilitate mutual support for staff involved.
Answers (1)
Last year, a women's professional organization made two small-business loans totaling $23,000 to young women beginning their own businesses. The money was lent at 9% and 11% simple interest rates.
Answers (1)
When Crossett Corporation was organized in January 2018, it immediately issued 4,000 shares of $50 par, 6 percent, cumulative preferred stock and 50,000 shares of $20 par common stock.
Answers (1)
If the market is in equilibrium, then an option must sell at a price that is exactly equal to the difference between the stock's current price and the option's strike price. a. True b. False
Answers (1)
Home » Business » In the market for skateboards, suppose the price of scooters (a substitute) falls slightly in price, while the cost of labor to produce skateboards increases significantly. what is likely to happen to the equilibrium price and quantity?
Sign Up Forgot Password?