A local labor market for lawn-mowing workers is initially in equilibrium. If researchers develop a new inexpensive grass seed that provides a lush, slow-growing lawn, which of the following will occur in the short run?
a. Both labor demand and labor supply will drop, leading to a higher wage rate but lower employment.
b. Both labor demand and labor supply will rise, leading to a lower wage rate and lower employment.
c. Labor demand will drop, leading to a lower wage rate and higher employment.
d. Labor supply will drop, leading to a higher wage rate and lower employment.
e. Labor demand will drop, leading to a lower wage rate and lower employment.
E
You might also like to view...
Which is the main motivation for entrepreneurs to take on the risks of producing?
A. Increasing costs of production B. Fun C. Profit D. Decreasing costs of production
If the price of coal, a close substitute for oil, decreases, then the
A. supply curve for oil will shift to the right. B. demand curve for oil will shift to the right. C. equilibrium price and quantity of oil will not change. D. demand curve for oil will shift to the left. E. supply curve of coal will shift to the left.
If inflation is eight percent, a nominal interest rate of six percent translates into a real interest rate of two percent
Indicate whether the statement is true or false
Refer to Scenario 1-2. Had the firm not produced and sold the last 300 hats, would its profit be higher or lower, and by how much?
A) Its profit will be $1,000 lower. B) Its profit will be $100 lower. C) Its profit will be $1,100 higher. D) Its profit will be $100 higher.