Suppose the wage earned by pear pickers suddenly rises. Which of the following effects would we most likely observe as a result?
a. The supply of apple pickers would decrease and the equilibrium wage of apple pickers would decrease.
b. The supply of apple pickers would decrease and the equilibrium wage of apple pickers would increase.
c. The demand for apple pickers would increase and the equilibrium wage of apple pickers would decrease.
d. The demand for apple pickers would decrease and the equilibrium wage of apple pickers would decrease.
b
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As opposed to general equilibrium analysis, partial equilibrium analysis looks
A) at an equilibrium and changes to it in a single, isolated market. B) at how changes in all other markets effect a particular market. C) at how equilibrium is determined in all markets simultaneously. D) at either price or quantity movements.
A movement along a consumption function is caused by a change in
a. households' real assets b. interest rates c. taxation policy d. expectations of price changes e. households' incomes