Assume the Market for Candles Is Competitive

question 328

Multiple Choice

Assume the market for candles is competitive. A new invention leads to labor-augmenting technological progress in the production of candles. This development

• A)decreases the demand for workers who make candles and decreases their equilibrium wage.
• B)increases the demand for workers who make candles and increases their equilibrium wage.
• C)increases the supply of workers who make candles and decreases their equilibrium wage.
• D)increases the supply of workers who make candles and increases their equilibrium wage.

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Definitions:

Friends

Individuals with whom one has a bond of mutual affection, typically exclusive of sexual or family relations.

Employer

An individual or organization that hires and pays people to work for them, offering wages or salaries in exchange for the employees' labor or services.

TV Stations

Broadcasting outlets that transmit television programs for public or cable viewing, often catering to specific demographics or interests.

Dissociative Reference Group

A group with which individuals do not want to associate, influencing their behavior by avoidance.