Suppose the market price of zinc doubles. Which of the following scenarios is most likely?
A) The demand for zinc miners will increase, raising the market wage rate.
B) The demand for zinc miners will decrease, reducing the market wage rate.
C) The demand for zinc will increase, raising the market price further.
D) The demand for zinc miners will decrease, reducing the market price back to its original price.
A
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Transaction and information costs
A) benefit borrowers at the expense of savers. B) benefit savers at the expense of borrowers. C) transaction costs hurt savers while information costs hurt borrowers. D) create profit opportunities for those who can reduce these costs.
The rationality assumption states that
A) all actions taken by consumers are based on what is good for society. B) people make decisions regardless of how the outcome will affect them. C) people make decisions to buy only those goods that they need rather than goods that they want. D) people do not intentionally make decisions that would leave them worse off.