Duy
Conducting Business Ethically and Responsibly
You are the son (or daughter) of the CEO of a small manufacturing company that produces running clothes. Your mother struggled to
build the company, and it is just now starting to be profitable in a very competitive field. In fact, you know it was a sacrifice for her to give
you this trip to China as a graduation gift. She has asked you to meet with the head of the company that is producing 40 percent of the
goods she markets to be sure that they are meeting her specifications for next season's product. When you get there, you find that
"sweatshop" is too kind a description for the plant. There are very young-looking children working in the factory, some workers are being
physically abused by the supervisors, and the plant is filthy and full of textile dust. But the merchandise looks great!

Ange in supply or (ii) a movement along the supply curve. a. during a real estate boom that causes house prices to rise, more homeowners put their houses up for sale. b. many strawberry farmers open temporary roadside stands during harvest season, even though prices are usually low at that time. c. immediately after the school year begins, fewer young people are available to work. fast-food chains must raise wages, which represent the price of labor, to attract workers. d. many construction workers temporarily move to areas that have suffered hurricane damage, lured by higher wages. e. since new technologies have made it possible to build larger cruise ships (which are cheaper to run per passenger), caribbean cruise lines have offered more cabins, at lower prices, than before. 2. in the following three situations, the market is initially in equilibrium. after each event described below, does a surplus or shortage exist at the original equilibrium price? what will happen to the equilibrium price as a result? a. in 2010 there was a bumper crop of wine grapes. b. after a hurricane, florida hoteliers often find that many people cancel their upcoming vacations, leaving them with empty hotel rooms. c. after a heavy snowfall, many peop