An Increase in the Wages Paid to Fishermen Will Have

question 150

Multiple Choice

An increase in the wages paid to fishermen will have what effect on the fish market equilibrium?

• A) Price will decrease, and quantity will decrease.
• B) Price will increase, and quantity will increase.
• C) Price will decrease, and quantity will increase.
• D) Price will increase, and quantity will decrease.
• E) Price and quantity will stay the same.

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Definitions:

Perfect Competitor

A firm in a perfectly competitive market, where there are many buyers and sellers, all products are identical, and no single buyer or seller can influence the market price.

Perfect Competitor

A theoretical market structure where numerous small firms compete against each other with no single company controlling the market price.

Long Run

A period in economics sufficient for all markets to adjust, including production, labor, and capital.

Marginal Revenue

The additional income received from selling one more unit of a product.