Suppose the United Automobile Workers union agrees to accept lower wages for members if the automobile manufacturers lower their prices to buyers
Will the UAW's measures usually result in a larger number of cars being sold and hence more jobs for UAW members? A) No, because people only buy new cars when they need them.
B) Not if the price elasticity of demand for new cars turns out to be less than one.
C) Only in the unlikely event the demand for new cars is unit elastic.
D) Probably not, because new car sales depend on advertising.
E) Yes.
E
Economics
You might also like to view...
What is the total profit to the monopolist from selling the goods separately?
a. $12,000 b. $13,000 c. $11,000 d. $10,000
Economics
Private property rights help to ensure an efficient use of resources, because owners of the resources must bear the costs of inefficient use
a. True b. False Indicate whether the statement is true or false
Economics