For this question, assume expectations of P and A are correct. Now suppose that there is a 3% reduction in A. Given this information, which of the following will occur?
A) The PS relation will shift up by 2%.
B) The WS relation will shift down by less than 2%.
C) The WS relation will shift down by 2%.
D) There will be no change in the real wage.
C
Economics
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Refer to the scenario above. If Ron has the right to listen to music at night, how much does his neighbor need to pay him to stop playing music?
A) Any amount above $5,000 B) Any amount below $3,000 C) Any amount between $3,000 and $5,000 D) Any amount between $5,000 and $8,000
Economics
If coffee and cream are complements, an increase in the price of coffee will cause
a. the demand for cream to increase. b. the demand for cream to fall. c. the demand for coffee to fall. d. no change in the demand for cream; only quantity demanded would be affected.
Economics