Kevin is an auto mechanic. He spends hours when he replaces the shocks on a car and hours when he replaces the brakes. He works no more than hours a week. He routinely completes at least shocks replacements and brake replacements a week. If he charges ​$ for labor replacing shocks and ​$ in labor for replacing​ brakes, how many jobs of each type should he complete a week to maximize his​ income?

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.