Exhibit 4-2 Supply and demand curves
The market shown in Exhibit 4-2 is initially in equilibrium at point E3. Union negotiations for workers producing good X result in a wage increase. Other things being equal, which of the following is the new equilibrium after this wage increase is in effect?
A. E1.
B. E2.
C. E3.
D. E4.
Answer: D
You might also like to view...
In perfect competition, one result of the model was that there were no economic profits in the long run. In a monopoly, the firm typically earns a positive economic profit. Why is there this difference?
The relationship between the number of hours a student studies for an exam and the exam grade is most likely graphed as
A) a line sloping down from upper right to lower left. B) a line sloping down from upper left to lower right. C) a line sloping up from lower left to upper right. D) a line sloping up from lower right to upper left.
By itself, if a U.S. firm builds a new factory overseas, U.S. net capital outflow rises
a. True b. False Indicate whether the statement is true or false
The Case in Point on campus parking suggested that giving students lower fares for taking public transportation was what kind of factor in the demand for parking spaces?
A) supply shifter B) demand shifter C) false prophet D) spoiler