Which of the following is evidence of a shortage of walnuts?
A) The equilibrium price of walnuts falls due to a decrease in demand.
B) The quantity of walnuts demanded is greater than the quantity supplied.
C) Firms lower the price of walnuts.
D) The price of cashews is lowered in order to make up for the walnut shortage.
B
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Rufus runs a skunk-skinning service in West Virginia. He employs skinners at a wage rate of $240 a week for each one. He leases the shack where his workers work for $200 per week. The rent is fixed for the next two years
Last week his 10 employees managed to skin a total of 300 skunks. a. What is the average product of labor for Rufus's company? b. What is Rufus's total variable cost per week? c. What is the average variable cost for Rufus's company? d. If Rufus adds his brother Jethro to his staff, at a wage rate of $240 a week, and his company can now skin 310 skunks per week, what is Rufus's new average variable cost?
What is being depicted in this graph showing the nonunion sector?
a. When the number of workers decreases from W 1 to W 3 , the salaries and quantity of
labor increase in an inverse relationship.
b. By increasing supply from S 1 to S 2 , workers unable to get jobs in the union sector
increase the wages in the nonunion sector.
c. In the nonunion sector, wage rates, labor supply, and quantity of labor are all less
than they are in the union sector.
d. Workers unable to get union jobs are forced into the nonunion sector, where the
increased supply of labor drives down wages.