In the figure above, if a minimum wage of $6 per hour has been imposed and the labor demand curve then shifts from D0 to D1 the wage rate ________ and the amount of employment ________

Liz has a comparative advantage in ________ because ________

A) smoothies; she can produce more smoothies per hour than Joe can B) salads; she can produce more salads per hour than Joe can C) smoothies; her opportunity cost of producing smoothies is lower than Joe's D) both goods; she can produce more of both goods per hour than Joe can E) salads; her opportunity cost of producing salads is lower than Joe's

Price controls will tend to cause misallocation of resources because

a. production (or opportunity) cost no longer corresponds to market price. b. people are unable to determine their preferences at the high or low price. c. producers no longer have incentive to be profitable. d. consumers no longer have incentive to spend their income efficiently.