Suppose That Being an Accountant and a Musician Require Similar

question 148

Multiple Choice

Suppose that being an accountant and a musician require similar amounts of skills, education, training, and so forth. If accountants are paid higher wages than musicians:

• A) the supply of musicians would increase and the supply of accountants would decrease.
• B) the supply of musicians would decrease and the supply of accountants would increase.
• C) the supply of both musicians and accountants would increase.
• D) the supply of both musicians and accountants would decrease.

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Definitions:

Cigarette Taxes

A tax levied on cigarettes to increase their price and decrease their consumption for health policy reasons.

Demand for Cigarettes

refers to the total quantity of cigarettes that consumers are willing and able to purchase at a given price level over a specific period of time.

Elastic

A characteristic of a good or service that indicates a high sensitivity of quantity demanded or supplied to changes in its price.

Normal Goods

Goods for which demand increases as the income of the consumer increases and falls when the income of the consumer decreases, all else being equal.