Business executives who think the demand for their product is very elastic at the current price are assuming
A) the demand will become less elastic at a higher price.
B) they will be able to sell more units at a higher price.
C) they will sell fewer units but receive more dollars in sales revenue at a higher price.
D) they will sell more units and receive more dollars in sales revenue at a lower price.
E) they will sell more units but receive fewer dollars in sales revenue at a lower price.
D
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If a minimum wage is set above the equilibrium wage rate, employment
A) will increase. B) will not change. C) will decrease. D) may increase, decrease or not change depending on how the supply of labor is affected by the minimum wage.
Which of the following will NOT shift the short-run aggregate supply function?
A) changes in labor costs B) changes in the costs of nonlabor inputs C) changes in the price level D) changes in the expected price level