If Workers Who Make DVDs Get a Pay Raise, the Equilibrium

question 497

Multiple Choice

If workers who make DVDs get a pay raise, the equilibrium price of a DVD ________ and the equilibrium quantity of DVDs ________.

• A) rises; increases
• B) rises; decreases
• C) falls; decreases
• D) falls; increases

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Definitions:

Intangible Assets

Non-physical assets such as patents, copyrights, trademarks, and goodwill.

Trademark

A recognizable sign, design, or expression which identifies products or services of a particular source from those of others, legally registered to claim exclusive rights.

Intangible Assets

Non-physical assets that possess value, such as trademarks, patents, goodwill, and copyrights.

Goodwill

The intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.