A simple linear demand function may be stated as Q = a - bP + cI where Q is quantity demanded, P is the product price, and I is consumer income. To compute an appropriate value for c, we can use observed values for Q and I and then set the estimated income elasticity of demand equal to:

Game theory is used to explain the pricing behavior of

A) monopolies. B) perfect competition. C) monopolistic competition. D) oligopolies.

If an employer could really hire women who were willing and able to do the same work as men for 20 percent less, profit-seeking employers would have

a. a strong incentive to hire more women, which would shrink this differential. b. little incentive to hire women, since hiring men would still be more profitable. c. a strong incentive to hire fewer women, and this would reduce the wage gap between men and women. d. a strong incentive to hire fewer women, which would expand the wage gap between men and women to an even higher level.