Refer to the figure below. If Mallory and Rick are the only two consumers in this market and the price of soda increases from $0.75 to $1.00 per can, the quantity of soda demanded in the market will ________ by ________ cans per week. 

If the relative price of one product rises and labor is mobile, then:

a. the percentage increase in the equilibrium real wage will be exactly the same as the percentage increase in the relative price. b. the percentage increase in the equilibrium real wage will be lower than the percentage increase in the relative price. c. the percentage increase in the equilibrium real wage will be higher than the percentage increase in the relative price. d. the equilibrium real wage will not change.

Suppose employees pay a bond of $1,000 to an employer. The gain from shirking is $400. Monitoring devices have been installed so that there is a 50% chance of being caught if you are shirking. The company is considering the installation of additional monitoring devices to increase the chance of catching a shirker to 100%. They feel this is needed to deter all shirking. What is your recommendation

to the company? Explain. What will be an ideal response?