If Steel Workers Obtain a Substantial Wage Increase, Employment in the Steel

question 75

Multiple Choice

If steel workers obtain a substantial wage increase, employment in the steel industry will be likely to fall the most if

• A) the demand curve for steel is highly inelastic.
• B) the demand curve for steel is highly elastic.
• C) the demand curve for steel workers is highly inelastic.
• D) there are no good substitutes for steel.

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Definitions:

Credit Sale

Transactions where goods or services are sold by providing credit to the customer, with payment to be received at a later date.

Merchandise Return

Goods returned by the buyer to the seller after purchase due to defects, dissatisfaction, or other reasons, often resulting in a reversal or adjustment of the initial sale transaction.

Sales Tax

A government-imposed tax on sales of goods and services, paid by the purchaser and collected by the seller.

Credit Customer

A customer who purchases goods or services on credit, paying at a later date rather than at the time of sale.