Suppose the Wage Earned by Pear Pickers Suddenly Rises

question 31

Multiple Choice

Suppose the wage earned by pear pickers suddenly rises. Which of the following effects would we most likely observe as a result?

• A)The supply of apple pickers would decrease and the equilibrium wage of apple pickers would decrease.
• B)The supply of apple pickers would decrease and the equilibrium wage of apple pickers would increase.
• C)The demand for apple pickers would increase and the equilibrium wage of apple pickers would decrease.
• D)The demand for apple pickers would decrease and the equilibrium wage of apple pickers would decrease.

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Definitions:

Expected Payoff

The average outcome or return anticipated from a decision or investment, considering all possible outcomes.

Perfect Information

A situation in which all participants have access to all relevant information, often used in game theory and economic models.

Custom Homes

Houses that are designed and built according to the specifications and preferences of the homeowner.

Expected Value

The anticipated value for a given investment or random variable, calculated as the weighted average of all possible values.