Referring to the Previous Question,all Else Constant,a 5 Unit Increase

question 85

Multiple Choice

Referring to the previous question,all else constant,a 5 unit increase in the wage index would cause:

• A)quantity supplied to increase by 9 units and be shown by a movement up the supply curve.
• B)quantity supplied to decrease by 9 units and be shown by a movement down the supply curve.
• C)quantity supplied to increase by 9 units and be shown by a rightward shift of the supply curve.
• D)quantity supplied to decrease by 9 units and be shown by a leftward shift of the supply curve.

---

Definitions:

Barrier to Entry

Obstacles that make it difficult for new competitors to enter a market, such as capital requirements, technology challenges, and government policies; essentially a rephrasing of "Entry Barriers".

Hairdressers

Professionals trained in cutting, styling, and treating hair.

Natural Monopoly

A market condition where a single company can provide goods or services at a lower cost than any potential competitor, leading to a monopoly due to natural market forces.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often associated with public goods and services.