The Demand for Automobiles Fell When Gasoline Prices Increased

question 99

Multiple Choice

The demand for automobiles fell when gasoline prices increased.Which of the following is likely to happen in this case,assuming all else equal?

• A) The labor demand curve of automobile companies will shift to the right.
• B) The labor demand curve of automobile companies will shift to the left.
• C) The supply of labor to the automobile industry will increase.
• D) The supply of labor to the automobile industry will decrease.

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Definitions:

Minimum Probability

The lowest chance or likelihood of an event occurring, often used in statistical analysis and decision-making processes to evaluate risk.

Costs

The expenses incurred in the production of goods or services, including materials, labor, and overhead.

Firm Indifferent

A state where a business has no preference between two or more choices due to equivalence in outcomes.

Agent's Incentives

The rewards, financial or otherwise, that motivate an agent, such as an employee or representative, to act in the principal's (such as an employer or company) best interests.