What is the effect on the equilibrium price and equilibrium quantity of orange juice if the price of apple juice decreases and the wage rate paid to orange grove workers increases?? The equilibrium price of orange juice ?______ and the equilibrium quantity? ______.
Fill in the blank(s) with the appropriate word(s).
Ans:
When demand decreases and supply decreases?, the equilibrium quantity of theater tickets decreases and the equilibrium price of a theater ticket rises, falls, or remains the same.
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A principal-agent problem occurs when
a. people are "fooled" by high absolute wages offered by employers. b. insurance increases people's willingness to take risks. c. an employer cannot fully monitor the employee's work. d. a highly productive worker is unable to earn any rent.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.