The wealth effect points out that consumption decreases when people's real wealth decreases

Suppose the money wage rate and the price level both fall by 5 percent. As a result

A) the quantity of labor demanded increases. B) the quantity of labor demanded decreases. C) the quantity of labor demanded does not change because there is no change in the real wage. D) people are worse off and there is more unemployment.

In an indifference curve/budget line diagram, generally when the price of a good increases, the consumer purchases ________ of the good and moves to a ________ indifference curve

A) less; lower B) less; higher C) more; lower D) more; higher