Producers Will Sometimes Lower the Quality of a Good When

question 79

Multiple Choice

Producers will sometimes lower the quality of a good when the government imposes:

• A)any price control.
• B)an excise tax.
• C)a binding price floor.
• D)a binding price ceiling.

Grasp the effects of unions and wage negotiations on employment levels and wages.

Comprehend the elasticity of the demand curve for human resources and its determinants.

Identify how supply and demand curves represent the labor market and understand the shifts in these curves.

Understand the principle of marginal productivity and its implications for resource use and firm profitability.

---

Definitions:

More Substitutes

The increase in alternative products or services that can replace or serve as options to a current product.

Demand Is Inelastic

A situation where the quantity demanded of a product changes very little in response to changes in its price.

Total Revenue

The overall amount of money generated from the sale of goods or services before subtracting any expenses.

Determinants Of Elasticity

Factors that influence the sensitivity of the quantity demanded or supplied of a good to price changes.