Economics_Ch05

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Unformatted text preview: ths than it is today. She is thinking about not selling her current oil supply until the oil price goes up. She knows she will lose the interest on the oil revenue she would have if she sold the oil now, but thinks that the higher price in three months might more than compensate for lost interest. • Would you advise Angie to wait until later to sell her oil? 2:38 P.M. Frank and Pete are having coffee at their local Starbuck’s. Frank owns a construction company, and Pete is his business manager. Frank says, “I’m not sure how many more people will want to work for us if we pay a higher wage. No matter how much money we offer, people just don’t want to work in construction the way they once did.” Pete just says, “I don’t know. Money is a powerful motivator.” • Will more people want to work in the construction industry if Frank increases the wage rate (dollars per hour) he pays his employees? 111 05 (110-127) EMC Chap 05 11/17/05 4:51 PM Page 112 Focus Questions Understanding Supply What is sup...
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This document was uploaded on 01/16/2014.

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