If the workers of a firm successfully negotiate an increase in wages, which of the following is most likely to happen?
A) The demand curve for the product the firm produces shifts rightward.
B) The demand curve for the product the firm produces shifts leftward.
C) The supply curve of the product the firm produces shifts rightward.
D) The supply curve of the product the firm produces shifts leftward.
D
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In a perfectly competitive market, a permanent increase in demand initially brings a higher price, economic
A) loss, and entry into the market. B) loss, and exit from the market. C) profit, and entry into the market. D) profit, and exit from the market.
Briefly explain the difference between absolute and relative PPP
What will be an ideal response?
Perfect competition is defined as market structure in which:
a. there are many small sellers. b. the product is homogeneous. c. it is very easy for firms to enter or exit the market. d. all of these.
Suppose Rebecca needs a dog sitter so that she can travel to her sister's wedding. Rebecca values dog sitting for the weekend at $200 . Susan is willing to dog sit for Rebecca so long as she receives at least $175 . Rebecca and Susan agree on a price of $185 . Suppose the government imposes a tax of $30 on dog sitting. The tax has made Rebecca and Susan worse off by a total of
a. $30. b. $25. c. $10. d. $5.