Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D2 and S1 (point C). Which of the following changes would cause the equilibrium to change to point B?
A) a positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples
B) an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples
C) an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease
D) a decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples
B
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The way income is allocated among the population is called the
A) income curve. B) income spread. C) distribution of income. D) Gini allocation.
The labor supply curve reflects how
a. workers' decisions about the labor-leisure tradeoff respond to a change in the wage. b. workers' decisions about the opportunity cost of labor respond to a change in the quantity of labor supplied. c. firms' decisions about the labor-leisure tradeoff respond to the quantity of labor demanded. d. firms' decisions about how the quantity of labor they hire respond to changes in their opportunities to earn profits.
The efficient amount of pollution control is:
A. always zero. B. the amount for which the marginal social benefit equals the marginal social cost of pollution. C. always a 100 percent abatement. D. the amount for which the total social benefit equals the total social cost of pollution.
Which of the following will not cause a shift in the demand curve for a good?
A. Income. B. Taste. C. The price of the good itself. D. The prices of other related goods.