When wages decrease
a. the substitution effect increases the quantity of labor supplied.
b. the substitution effect increases the supply of labor
c. the income effect increases the quantity of labor supplied.
d. the income effect increases the supply of labor.
c
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The table above gives data for the nation of Syldavia. The official settlements account has a
A) $40 billion surplus. B) balance of $380 billion. C) $30 billion deficit. D) zero balance. E) $40 billion deficit.
Janet Yellen, Chair of the Federal Reserve, must choose whether tomorrow she meets with the Secretary of the Treasury or with the Congress regarding the financial crisis. This choice reflects the
A) fact that Ms. Yellen faces scarcity. B) concept of entrepreneurship. C) fact that Ms. Yellen responds to incentives. D) use of capital.
Producers want to calculate the price elasticity of demand because they want to:
A. know the goods and services for which consumers are most sensitive to price changes. B. be able to predict the future preferences of their customers. C. know that consumers will have the same response to a price change regardless of the good or service. D. understand what goods their customers dislike the most.
All the below choices are examples of promoting a firm's product, except
a. Advertising b. Pricing c. Discount coupons d. End-of-aisle displays