XYZ Inc, is a leading manufacturer of construction equipment in country A. Recently the firm automated a part of their assembly line in the road rollers lelSiOn. Some of the workers at XYZ were made redundant by this automation The labor union leader, Debra Jackson, argues that the firm can avoid laying them off by moving these workers to its tractor production division. The firm did absorb some of the laid off workers from the road roller division in the production of tractors, expecting output to increase by about 10 percent However, output did not increase as much as expected. Which ofthe following, iftrue, can explain this outcome? ' .

A. The firm recently gave in to the workers' demand for higher pay in the tractor division. 3

B. The capital-labor ratio in the tractor division declined substantially when these workers were absorbed.

C. XYZ is planning to eventually automate more processes in both divisions. ' .

D. A boom in the real estate market increased the demand and consequently the prices of XYZ's products.

E. All walkers absorbed in the road roller divi5ion were thoroughly trained.

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

Ben collins plans to buy a house for $166,000. if the real estate in his area is expected to increase in value by 2 percent each year, what will its approximate value be five years from now?

Who has summer school : ( because i do : (