Suppose That the Labor Market for Life Guards Is Initially

question 124

Multiple Choice

Suppose that the labor market for life guards is initially in equilibrium. Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool. What happens to the equilibrium wage and quantity of life guards?

• A)Both the equilibrium wage and quantity increase.
• B)Both the equilibrium wage and quantity decrease.
• C)The equilibrium wage increases, and the equilibrium quantity decreases.
• D)The equilibrium wage decreases, and the equilibrium quantity increases.

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Definitions:

Overcome

To successfully deal with or gain control of something difficult, such as obstacles, challenges, or conditions.

Lithium

A mood-stabilizing drug commonly used in the treatment of bipolar disorder and other mood disorders.

Antidepressant Effects

The therapeutic outcomes achieved from the use of medications or interventions designed to alleviate symptoms of depression.

Eysenck

Refers to Hans Eysenck, a psychologist who developed theories related to personality and its biological basis.