If the Relative Price of One Product Rises and Labor

question 72

Multiple Choice

If the relative price of one product rises and labor is
Mobile, then:

• A)the percentage increase in the equilibrium real wage will be exactly the same as the percentage increase in
• The relative price.
• B)the percentage increase in the equilibrium real wage will be lower than the percentage increase in the relative
• Price.
• C)the percentage increase in the equilibrium real wage will be higher than the percentage increase in the
• Relative price.
• D)the equilibrium real wage will not change.

---

Definitions:

Schemas

Cognitive structures that help us organize and interpret information, based on our accumulated knowledge and experience.

Sensory Input

Information received by the senses that can then be processed by the brain.

Absolute Thresholds

The minimum intensity at which a stimulus can be detected by the senses 50% of the time.

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli, allowing organisms to focus on changes in their environment.