What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?
a. The labor supply will stay unchanged until the wages paid to pear pickers change.
b. The labor supply will decrease.
c. The labor supply will increase.
d. The labor supply may fall or rise, depending on the price of pears.
b
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Refer to Figure 13-3. The marginal revenue from one additional unit sold is the sum of the gain in revenue from selling the additional unit and the loss in revenue from having to charge a lower price to sell the additional unit
Based on the diagram in the figure A) X represents the gain (price effect) and Y the loss (output effect). B) Y represents the gain (output effect) and X the loss (price effect). C) X + Z represents the loss (output effect) and Y the gain (price effect). D) X represents the loss (price effect) and Y + Z the gain (output effect).
When an investor buys a corporate bond
A) the investor becomes part owner of the corporation. B) the principal of the bond is a loan to the corporation. C) the interest made on the bond represents the bondholder's limited liability in the company. D) the face value of the bond is equal to what the investor paid for the bond.