If the Demand for Alarm Clocks Decreases,the Effect on the Alarm

question 15

Multiple Choice

If the demand for alarm clocks decreases,the effect on the alarm clock job market will be to

• A)Increase the demand for labor and increase equilibrium wages.
• B)Reduce the supply of labor and increase equilibrium wages.
• C)Decrease the demand for labor and reduce equilibrium wages.
• D)Have no impact on equilibrium wages.

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Definitions:

Credit Extension

The practice of providing borrowers additional time to pay off existing debts, often involving modified repayment terms or agreements.

Receivables Financing

A method of raising finance based on the sale or pledge of a company's accounts receivable to a third party at a discount.

Trade Credit

A form of credit extended by suppliers allowing customers to purchase goods or services and pay for them at a later date.

Payment Policy

Guidelines or procedures set by a company to manage how and when payments are made and received.