If Workers Who Make DVDs Get a Pay Raise, the Equilibrium

question 218

Multiple Choice

If workers who make DVDs get a pay raise, the equilibrium price of a DVD __________and the equilibrium quantity of DVDs__________ .

• A) rises; increases
• B) falls; decreases
• C) falls; increases
• D) rises; decreases

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Definitions:

Maturity Value

The amount payable to the holder of a financial instrument at the end of its maturity period, including the principal and any accrued interest.

Interest Owed

The amount of money that is due as interest on a loan or debt.

Repayment Date

The specific date on which a borrower agrees to pay back the principal and/or interest on a loan.

Employees

Individuals hired by a company or organization to perform specific duties in exchange for compensation.