Assume wages paid by a firm to its workers decrease. What will be the reaction of consumers as the market moves to its new equilibrium?
A) Quantity demanded will decrease.
B) Quantity demanded will increase.
C) The demand curve will shift to the left.
D) There will be no reaction by consumers, since input prices determine supply, not demand.
B
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Refer to Scenario 12.2. In this game, if the players successfully coordinate and Jerome ends up playing his weak strategy, then
A) Eliza will donate a kidney and Jerome will not donate. B) both Eliza and Jerome will donate a kidney. C) Jerome will donate a kidney and Eliza will not donate. D) neither Eliza nor Jerome will donate a kidney.
Which of the following statements is false?
A) A change in the price of good X will usually change the quantity supplied of good X, ceteris paribus. B) A change in the number of sellers of a good can change the supply of that good. C) Price and quantity supplied are directly related. D) A vertical supply curve represents a direct relationship between price and quantity supplied.