Question

As the owner of a business, Talia has allowed her employees to do their work on one computer screen while watching movies on a second computer screen. She has noticed, however, that her employees are distracted by being able to watch movies while at work. How would an economist describe this situation?

Answer 1

Answer:

There will be a leftward shift in supply curve.

Explanation:

Talia has allowed her employees to do their work on one computer screen while watching movies on a second computer screen. However, her employees are distracted by being able to watch movies while at work.

Because of this distraction, they will become less efficient and production will decrease. This decline in the production level will cause the supply curve to move to the left indicating a reduction in supply.