Suppose That the Market for Labor Is Initially in Equilibrium

question 518

Multiple Choice

Suppose that the market for labor is initially in equilibrium. Suppose that workers' tastes change so that they choose to retire at age 55 rather than age 67. Then the equilibrium wage

• A)and the equilibrium quantity of labor will rise.
• B)and the equilibrium quantity of labor will fall.
• C)will rise, and the equilibrium quantity of labor will fall.
• D)will fall, and the equilibrium quantity of labor will rise.

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Definitions:

Utility Function

A mathematical representation of how different combinations of goods or levels of consumption affect an individual's level of satisfaction or happiness.

Consumption of Nuts

The act of eating nuts, which are high in protein and healthy fats, as part of a diet.

Consumption of Berries

The act of using or eating berries, which can be analyzed in economics to study preferences or nutritional impacts.

Price of Nuts

The cost or value attached to purchasing nuts, which can vary based on type, quality, and market conditions.