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5 May, 06:47

You are a producer of cold medicine. Last month, a fire at your factory eliminated 50% of your firm’s production capability. At the same time, your compensation costs increased by 5% because of an increase in healthcare costs. What is the consequence of these events?

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  1. 5 May, 06:53
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    -The flood shifts the supply to the left.

    -The flood does not shift the demand curve.

    -The increase in healthcare costs shifts the supply curve to the left.

    -The increase in healthcare costs doesn't shift the demand curve.

    Explanation:

    The decrease in supply will shift supply to the left and increase in supply cost will shift supply left, and demand will not change
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