Suppose there are four industries. Labor costs are 70 percent of total costs in industry A, 80 percent in B, 45 percent in C, and 10 percent in D. In which of these industries will a 10 percent increase in the price of labor reduce quantity demanded of

If a worker receives 6 percent higher nominal wages over a year in which inflation is 2 percent, the worker's real wages have

A) risen by 8 percent. B) risen by 4 percent. C) risen by 3 percent. D) fallen by 3 percent. E) fallen by 4 percent.

Refer to the above figure. A shortage will exist when

A) the price is between $0 and $6. B) the price equals $6. C) the price equals $10. D) quantity demanded equals 3.