Why might the market supply of workers increase when wages increase in a particular occupation or location?
What will be an ideal response?
Individual labor supply response to a wage increase is ambiguous, but an increase in wages in a particular industry will attract workers from other industries and from other locations to move to the higher-wage industry and location.
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A price searcher faces the following demand function: At $7, 6, 5, 4, and $3, the quantity demanded is 300, 400, 500, 600, and 700 units respectively. If the firm's marginal cost is $100 at any level of output, it would maximize net revenues by
A) producing 400 units and charging $6. B) producing 500 units and charging $5. C) producing 600 units and charging $4. D) producing 700 units and charging $3.
If a person is waiting to be called back to a job from which she has been laid off, how is she classified by the Bureau of Labor Statistics?
A) as not in the labor force B) as an unemployed person C) as an employed person D) as a discouraged worker
A consumer can purchase a product that is outside her or his budget constraint if it is on a higher indifference curve.
Answer the following statement true (T) or false (F)
Suppose that there are only three consumers of a product. At a price of $6 per unit, the first consumer would buy 12 units of the product, the second consumer would buy 8 units of the product, and the third consumer would buy 3 units of the product. If you drew a market demand curve for this product, the quantity demanded at a price of $6 would be:
A. 23 units. B. 20 units. C. 12 units. D. 11 units.