Scenario: Mr

question 282

Multiple Choice

Scenario: Mr. Olivander has a monopoly on supplying magic wands. The table below shows the demand schedule for magic wands per day.

-Refer to the scenario above.Mr.Olivander used to sell two wands per day.Now he plans to cut back his sale to only one wand.The price effect of this plan is a ________,and the quantity effect of this plan is a ________ in his revenue.

• A) $25 decrease; $130 increase
• B) $90 decrease; $65 increase
• C) $25 increase; $65 decrease
• D) $65 decrease; $90 increase

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Definitions:

Overtime

Hours worked in addition to one's regular working hours, often eligible for additional pay or compensatory time off.

Outsourcing

The practice of hiring external firms or individuals to perform tasks, handle operations, or provide services that are either difficult to manage or outside the company's core business.

Labor Surplus

Refers to a situation where the supply of labor exceeds the demand for labor in the market, leading to unemployment or underemployment.

Outsourcing

The practice of hiring third parties to perform services or create goods that were traditionally done in-house, often to save costs or tap into specialized expertise.