Suppose workers at the bakery discover that a new firm making baseballs came to town and is offering higher wage rates. What will happen in the labor market for bakers?
a. The labor supply curve will shift to the right.
b. Demand for bakers will increase because the MPP of bakers will decrease.
c. The quantity supplied of labor will increase because the wage rate will decrease.
d. The MRP of bakers will increase.
e. The labor supply curve will shift to the left.
E
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The imaginary figure who advises us whether society is making the most of its scarce resources is the
A) opportunity-cost pixie. B) benevolent social planner. C) scarcity goddess. D) compassionate dictator.
When a shortage exists in a market, sellers
a. raise price, which increases quantity demanded and decreases quantity supplied until the shortage is eliminated. b. can raise price without worrying about the loss of sales, which increases quantity supplied and decreases quantity demanded until the shortage is eliminated. c. lower price, which increases quantity demanded and decreases quantity supplied until the shortage is eliminated. d. lower price, which decreases quantity demanded and increases quantity supplied until the shortage is eliminated.