Lucky,a Contractor,enters into a Contract with Penny,a Homeowner,to Remodel Her

question 42

True/False

Lucky,a contractor,enters into a contract with Penny,a homeowner,to remodel her kitchen.The contract provides a specific completion date,but does not specify what will happen if Lucky does not have the job finished by the date.So,Penny may deduct $100 per day from the contract price until the job is finished,because this is the industry norm.

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Definitions:

Equilibrium Wage

is the wage rate at which the supply of labor equals the demand for labor in the labor market.

Demand for Labor

The total amount of labor that employers want to hire at various wage rates, during a certain period.

Supply and Demand

The fundamental economic model that explains how the market price of a product is determined by the quantity of the product that producers are willing to supply and the quantity that consumers are willing to purchase.

Labor Market

The marketplace where workers offer their services for wages and employers look for workers to hire.