Suppose at the going wage rate of $20 per hour, firms can hire as many hours of janitorial services as they desire. If any firm tries to lower the wage rate to $19, it will not be able to hire any janitor
What does this indicate about the supply curve for janitorial services?
A) Supply is relatively inelastic. B) Supply is perfectly elastic.
C) Supply is unit-elastic. D) Supply is perfectly inelastic.
B
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Foreign direct investment refers to
A) the acquisition of more than 10 percent of the shares of ownership in a company in another nation. B) the acquisition of less than 10 percent of the shares of ownership in a company in another nation. C) the granting of a loan to a company located in a foreign country. D) a direct monetary grant to a foreign company or government.
An economist estimates that .67 is the price elasticity of demand for disposable diapers. This suggests that disposable diaper producers could:
a. advertise more to raise the price elasticity of demand. b. encourage more parents to use cloth diapers. c. lower the price of disposable diapers to raise more revenue. d. raise the price of disposable diapers to raise more revenue. e. maximize revenues by staying at the current price.