If the price of hair styling increases, then
A) hair styling salons hire fewer workers but makes more profit.
B) hair stylists demand an increase in wages and the salons hire fewer workers.
C) the value of marginal product of each hair stylist increases and the demand curve for hair stylists shifts leftward.
D) the value of marginal product of each hair stylist increases and the demand curve for hair stylists shifts rightward.
D
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The Bertrand model of price setting assumes that a firm chooses its price
A) independently of what price other firms charge. B) subject to what price rival firms are charging. C) so that joint profits are maximized. D) without considering the shape of the demand curve.
Henri earned a salary of $50,000 in 2001 and $60,000 in 2012 . The consumer price index was 177 in 2001 and 225 in 2012 . Henri's 2001 salary in 2012 dollars is
a. $39,333.33. b. $74,000.00. c. $89,333.33. d. $63,559.32.
Alexander Hamilton used the infant-industry argument to support trade restrictions
Indicate whether the statement is true or false
Lisa consumes only pizzas (P) and burritos (B). Her utility function is U = P0.5 B0.5. The price of per pizza is $10 and the price per burrito is $5. In equilibrium, Lisa consumes 4 pizzas. Using Lisa's utility function, calculate how many burritos she consumes
What will be an ideal response?