Chapter 3 The Market at Work Supply and Demand Quest I thir

Chapter 3: The Market at Work: Supply and Demand Quest I thir e Page 89 3.3. What determines supply? If the holiday season is coming up in a couple of weeks, an electronics manufacturer is likely to hire more workers to help increase the quantity supplied today. 1: True False MacBook Air 3 6

Solution

The statement provided in the problem is \'if the holiday season is coming in a couple of weeks, an electronics manufacturer is likely to hire more workers to help increase the quantity supplied today\'. If a holiday season is approaching, an electronics manufacturer would prefer to hire more workers because in the holiday season, more people will stay home (children etc.), which means greater usage of electronic products will be at home. If it is a summer season, more usage of air conditioners, fans, coolers, mixers and juicers etc. will be there. If it is a winter season, more usage of heaters, microwaves, etc. will be there. Thus, the demand of electronic items will increase suddenly. In order to match that demand, more units of output will be needed, which is why more number of workers are needed. That is why, the manufacturer will hire more workers to increase the manufacturing and hence, increase the quantity supplied today.
The given statement is true.