If a firm buys its labor in a competitive market, then in the short run, a decrease of the demand for the firm's product will cause the firm to

A) offer a higher wage.
B) hire fewer workers.
C) hire more workers.
D) offer a lower wage.

B

Economics

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When large firms in oligopoly markets cut their prices

A) we don't know for sure how rival firms will respond. B) rival firms will also cut their prices to avoid losing sales. C) rival firms will not change their prices because most of their customers have signed contracts that commit them to doing business with the same firms for the life of their contracts. D) rival firms will not cut their prices because they fear that the federal government will accuse them of collusion.

Economics

When the demand for grapes increases and the supply of grapes decreases at the same time, we can predict that the: a. price of grapes will fall

b. price of grapes will rise. c. quantity of grapes exchanged will fall. d. quantity of grapes exchanged will rise.

Economics