The labor-supply curve will be downward sloping if the:
A. income effect outweighs the price effect.
B. price effect outweighs the income effect.
C. substitution effect outweighs the income effect.
D. The labor-supply curve is never downward sloping.
A. income effect outweighs the price effect.
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The rate of inflation measures the change in the relative prices of the goods and services produced in the macroeconomy over a specified period of time
Indicate whether the statement is true or false
Which of the following is a necessary condition for price discrimination?
a. The seller must be able to divide the markets according to the different price elasticities of demand. b. It must be difficult for one buyer to resell to another buyer. c. Both a and b. d. Neither a nor b.
The unit-elastic demand curve bends in the middle toward the origin of the graph and at either end moves closer to the axes
a. True b. False Indicate whether the statement is true or false
A company producing sports equipment wishes to increase its total revenue. Should it increase or decrease its price when the product's price elasticity of demand is equal to -0.8?
(a) Increase - the good is price inelastic and in order to increase TR the firm should increase its price. (b) Decrease - the good is price elastic and in order to increase TR the firm should decrease its price. (c) Increase - the good is price elastic and in order to increase TR the firm should increase its price. (d) Decrease - the good is price inelastic and in order to increase TR the firm should decrease its price.