As a Result of a Decrease in the Number of Demanders

question 19

Multiple Choice

As a result of a decrease in the number of demanders for your firm's product, you should anticipate a ________price for your product than the current equilibrium price and a _________ equilibrium quantity than the current equilibrium quantity.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

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Definitions:

Labor Market

The supply and demand for labor, where employers seek to hire workers, and workers look for jobs, determining employment levels and wages.

Labor Supply Curve

A graphical representation that shows how the quantity of labor supplied by workers changes in response to changes in wages.

Profit-maximizing

The process by which a firm determines the price and output level that returns the greatest profit.

Selling Price

The amount of money for which a product or service is sold to customers.