Worker a and Worker B Both Prefer to Work 8

question 9

Multiple Choice

Worker A and Worker B both prefer to work 8 hours a day when their hourly wage is $12 an hour. They are currently working 8 hours a day and getting $12 an hour. Another employer wants to employ them only 6 hours a day (and requires them to not work in another job) . Worker A will demand a higher wage to take the 6 hour job (compared to Worker B. when

• A) worker A has a more curved (bowed in) set of indifference curves.
• B) worker A has a less curves (less bowed in) set of indifference curves.
• C) worker A has a higher income elasticity of demand for leisure
• D) worker A has a higher income elasticity of demand for leisure.

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Definitions:

Perfectly Competitive Industry

A market structure where many firms sell identical products, entry and exit are easy, and no single firm can influence the market price.

Market Shares

The percentage of an industry's total sales that is earned by a particular company over a specified time period.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Patent Rights

Legal rights granted to an inventor or assignee to exclusively make, use, or sell an invention for a certain period of time.