The demand for DVDs increases. As a result
A) the wage rate in the DVD industry increases and the quantity demanded of workers increases.
B) the wage rate in the DVD industry increases and the quantity supplied of workers increases.
C) the demand for labor increases and the supply of labor also increases, leaving wages unchanged.
D) the demand for labor increases, but since the supply curve of labor is perfectly elastic, the wage rate does not change.
Ans: A) the wage rate in the DVD industry increases and the quantity demanded of workers increases.
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The demand for chocolate is perfectly inelastic in Foodieland. If a tax is imposed on chocolate, ________
A) the deadweight loss due to taxation will be high B) the deadweight loss due to taxation will be one C) consumers will stop consuming chocolate D) the tax burden will fall entirely on buyers
The relationship between average and marginal variables can be stated as follows: if the marginal is greater than the average,
a. the average is increasing b. the average is decreasing c. the marginal is increasing d. the marginal is decreasing e. the total is decreasing