Workers in the United States receive significantly higher compensation than almost all other western European nations.

An increase in subway fares in New York City will boost your expenditures on subway rides if

A) the supply of subway rides is elastic. B) the supply of subway rides is inelastic. C) your demand for subway rides is elastic. D) your demand for subway rides is inelastic.

A restaurant hires cooks and waiters. Cooks earn $10 an hour; waiters earn $5 an hour. The manager, who wants to maximize the number of meals served given a fixed payroll of $45 per hour, expects the following from cooks and waiters: Given the above information, and given the fixed payroll, the maximum number of meals that can be served is

A. 670. B. 850. C. 1,130. D. 240. E. none of the above