Last month, the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit. This month, the company supplied the same quantity of binders at $4 per unit. Based on this evidence, Tecumseh has experienced
A) an increase in supply. B) a decrease in the quantity supplied.
C) an increase in the quantity supplied. D) a decrease in supply.
A
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Refer to the above figure. Suppose the government imposes a minimum wage rate of $20.00 per hour. This will likely result in
A) a surplus of labor. B) a shortage of labor. C) an equilibrium in the labor market. D) an increase in the demand for labor.
Which of the following shows how decreasing staff could improve outcomes in the short run?
a. Every time Edie wanted to try something on at Irina’s clothing store there was no fitting room attendant to assist her. b. The service at Morton’s coffee shop was impeccable—as one person took an order and rang it up, another filled it. c. Dani sometimes shopped at Paige’s book store, but sometimes she chose to place an order on the store’s website. d. Abby walked out of Davidson’s because different salespeople kept waiting near her and interrupting her as she browsed.
If the demand curve for a product is horizontal, then
A) the demand for the good is perfectly inelastic. B) consumers are not responsive to price changes. C) its price elasticity of demand approaches infinity. D) consumers may purchase all they want to at the established market price.
Refer to Scenario 9.3 below to answer the question(s) that follow. SCENARIO 9.3: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 per cent on their investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $5 on average per meal. Refer to Scenario 9.3. The normal return to the investors on a weekly basis is
A. $600. B. $1,000. C. $3,600. D. $4,500.