The table above gives the utility from pens and pencils. If the consumer has an income of $4, pens cost $1, and pencils cost $.20, which of the following combinations maximizes the consumer's utility?

If prices are sticky

A) prices will quickly adjust to changes in demand. B) economic activity will not be coordinated efficiently. C) quantity supplied will always equal quantity demand. D) economic activity will be coordinated efficiently.

A firm's demand for labor depends on the

A) nominal wage rate because it pays workers in dollars. B) real wage rate, which equals the nominal wage divided by the price level. C) real wage rate, which equals the nominal wage divided by the hours worked. D) nominal wage rate, which equals the real wage divided by the price level. E) supply of labor.