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Home Q & A Board Other Fields Homework Help Business Economics
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Armenb Armenb
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5 years ago
What happens to the quantity of labor supplied, the quantity of labor demanded, and the number of unemployed workers if the minimum wage rate set above the equilibrium wage is increased still higher?
 
  What will be an ideal response?


Ques. 2

When Jitters Coffee Company, Inc, can lower the cost of packaging a pound of coffee by doubling the quantity packaged each day, it is achieving
 
  A) economies of scale.
  B) economies of scope.
  C) economies of team production.
  D) all of the above


Ques. 3

John's utility of wealth curve is shown in the above figure. He currently has wealth of 20,000. If the state lottery offers a 1 in 10,000 chance of winning 10,000, John will
 
  A) pay whatever price it takes to play.
  B) pay 1 to play this game.
  C) pay less than 1 to play this game.
  D) not be willing to play this game at any price.


Ques. 4

In 2012 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution effect caused
 
  A) the demand for Nike shoes to increase.
  B) people to switch from Adidas shoes and buy more Nikes.
  C) the relative price of Nikes to increase.
  D) the demand curve for Nikes to shift rightward.


Ques. 5

What is the price elasticity of demand and how is it measured?
 
  What will be an ideal response?


Ques. 6

If an indifference map for a consumer is made up of straight, negatively sloped lines, the goods are
 
  A) perfect complements.
  B) unrelated.
  C) perfect substitutes.
  D) not desirable.
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raven2illraven2ill
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#1
Posts: 332
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5 years ago
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(Answer to Q. 1)  An increase in the minimum wage increases the quantity of labor supplied because more people are willing to work at the higher wage rate. It decreases the quantity of labor demanded because firms hire fewer workers since the cost of the workers (their wage rate) has increased. The increase in the quantity supplied combined with the decrease in quantity demanded leads to an increase in the number of unemployed workers.

(Answer to Q. 2)  A

(Answer to Q. 3)  C

(Answer to Q. 4)  B

(Answer to Q. 5)  The price elasticity of demand is a unit-free measure of responsiveness of the quantity demanded of a good to a change in its price when all other influences on buyers plans remain the same. To calculate the price elasticity of demand we divide the percentage change in quantity demanded by the percentage change in price.

(Answer to Q. 6)  C
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Armenb Author
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#2
5 years ago
Helps a lot <3
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