Suppose at the going wage rate of $20 per hour, firms can hire as many hours of janitorial services as they desire. If any firm tries to lower the wage rate to $19, it will not be able to hire any janitor
What does this indicate about the supply curve for janitorial services?
A) Supply is relatively inelastic. B) Supply is perfectly elastic.
C) Supply is unit-elastic. D) Supply is perfectly inelastic.
B
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Paul Samuelson, a famous economist, said that
a. "the bond market has predicted zero out of the past nine recessions.". b. "the stock market has predicted zero out of the past nine recessions.". c. "the bond market has predicted nine out of the past five recessions.". d. "the stock market has predicted nine out of the past five recessions.".
If money is neutral, then changes in the quantity of money
a. do not affect real output. b. affect both nominal and real output c. do not affect nominal output. d. affect neither nominal nor real output.
In calculating the unemployment rate, part-time workers over the age of 16 are counted as
A) not in the labor force. B) employed if they are part-time workers for noneconomic reasons and unemployed if they are involuntary part-time workers. C) not in the working-age population. D) unemployed. E) employed.
If a consumer is choosing the optimal combinations of two goods X and Y, and then the price of good Y decreases, this causes
a. MU/P of good X to increase, so the consumer now should buy more X to find a new optimal combination b. demand for good X to increase c. MU/P of good Y to increase, so the consumer now should buy more Y to find a new optimal combination d. MU/P of good Y to decrease, so the consumer now should buy more Y to find a new optimal combination e. the demand for good X and good Y will not change because utility does not depend on price