Like real GDP, investment fluctuates, but it fluctuates much less than real GDP

If a union successfully restricts the supply of labor to the firm but the union has no effect on the demand for labor, then the

A) wage increases and there is no change in employment. B) wage increases and employment increases. C) wage increases and employment decreases. D) wage increases and there is an unambiguous effect on employment.

For many years, dairy farmers would milk their cows and bring the milk to market. After buyers and sellers negotiated all sales, the farmers dumped large quantities of milk into rivers. What does it tell us about that milk market? A free market would not have created an ______, so that in this case there must have been a _________

a. opportunity to dump milk; special permit b. excess supply; price floor c. excess demand; price floor d. excess supply; price ceiling e. excess demand; price ceiling