Refer to the figures below. We begin in equilibrium with wages We in both the Unionized and Non unionized Labor Markets. Now suppose a Union Wage of Wu is achieved in the Unionized Labor Market. This will cause
a. fewer job opportunities in the Unionized Labor Market.
b. an increase in the supply of workers looking for employment in the Non unionized Labor Market.
c. lower wages to be earned in the Nonunionized Labor Market.
d. All of the above.
d. All of the above.
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If supply increases and demand decreases, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. lower; uncertain B. higher; higher C. lower; lower D. higher; uncertain
Price cap regulation
A) does not provide incentives to firms to minimize their costs because firms cannot change prices. B) sets the maximum price these firms can charge. C) gives firms the incentive to exaggerate their costs. D) Both answers A and C are correct. E) Both answers A and B are correct.
A firm that faces a downward sloping demand curve is known as a
A) price taker. B) utility maximizer. C) price searcher. D) perfect competitor.
For better or worse, people have virtually ____________ wants.
a. supply-driven b. unlimited c. limited