The value of price elasticity of demand for a good with no close substitutes
a. will tend to be greater than -1 (e.g., -0.03)
b. will tend to be less than -1 (e.g., -4)
c. will tend to be equal to -1
d. will tend to be equal to 0
e. cannot be determined without more information
A
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In Figure 10.3, an increase in the supply of labor will cause the equilibrium:
A. wage and hours of labor used to increase. B. wage and hours of labor used to decrease. C. wage to increase and hours of labor used to decrease. D. wage to decrease and hours of labor used to increase.
The demand curve for labor of a monopolist
A. slopes upward because monopolists use more capital than do perfectly competitive firms. B. slopes down because of the law of diminishing marginal product and because the monopolist must lower prices to sell additional units of the good. C. is horizontal even though the demand curve for labor for a competitive firm is downward sloping. D. slopes down for the same reason as the demand curve for labor of a perfectly competitive firm.