A buyer is willing to buy 10 units of a good at a maximum price of $10 per unit. The reservation value of the buyer in this case is:
A) $1.
B) $10.
C) $20.
D) $100.
B
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Because new plastic and recycled plastic are substitutes, as the price of newly produced plastic increases,
A) the demand curve for recycled plastic shifts to the left. B) there is a movement up along the demand curve for recycled plastic. C) there is a movement down along the demand curve for recycled plastic. D) the demand curve for recycled plastic shifts to the right.
Consider an economy in which all labor markets are perfectly competitive, all workers are equally able to do any job, and the nonwage attributes of all jobs are equally attractive to all workers. Which of the following would occur in a labor market where the current wage rate exceeds wage rates in alternate markets?
a. Labor demand will decrease, and the equilibrium wage rate will fall. b. Labor demand will increase, and the equilibrium wage rate will fall. c. Labor demand will increase, and the equilibrium wage rate will rise. d. Labor supply will decrease, and the equilibrium wage rate will rise. e. Labor supply will increase, and the equilibrium wage rate will fall.