An increase in the price of a close substitute for good A will:
a. increase demand, increase price and increase the quantity exchanged.
b. increase demand, increase price and decrease the quantity exchanged.
c. increase supply, increase price and increase the quantity exchanged.
d. decrease demand, decrease price and decrease the quantity exchanged.
a
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Some policymakers claim that raising the minimum wage leads to higher employee morale and productivity. In this sense, an increased minimum wage would be operating like
A) an equilibrium real wage. B) an efficiency wage. C) a full employment wage. D) a sticky wage.
If the supply of health care services is highly inelastic, programs that subsidize the cost of purchasing medical services will
a. lead to higher prices for medical services. b. lead to lower prices for medical services. c. not affect the price of medical services. d. help the buyers of medical services more than the sellers of those services.