Phil's Copy Studio Pays Its Workers $60 Per Day and Sells

question 24

Multiple Choice

Phil's Copy Studio pays its workers $60 per day and sells poster-size copies for $10 per print. If the market wage rises to $70:

• A) the demand for labor increases.
• B) the demand for labor decreases.
• C) the quantity demanded of labor increases, but the demand for labor curve does not shift.
• D) the quantity demanded of labor decreases, but the demand for labor curve does not shift.

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Definitions:

Marginal Utility

The change in total satisfaction or utility that a person receives from consuming one additional unit of a good or service.

Budget Line

Represents all the combinations of two goods that a consumer can afford given their prices and the consumer's income.

Indifference Curve

A graphical representation showing combinations of goods or services among which a consumer is indifferent, reflecting their preferences.

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, and other income sources.