Wages for Workers Producing IPods and Similar Products Will Rise

question 141

Multiple Choice

Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for iPods. You predict that the major effect will be that the

• A) demand curve for an iPod will shift rightward.
• B) demand curve for an iPod will shift leftward.
• C) supply curve for an iPod will shift leftward.
• D) supply curve for an iPod will shift rightward.

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Definitions:

Jury Selection

The process of questioning and choosing jurors from a pool of candidates to serve on a jury during a trial.

Competitive Industry

A Competitive Industry is characterized by many producers and consumers with the products being largely similar, leading to minimal ability for firms to set prices higher than market rates.

Long-Run Equilibrium

is an economic condition where all inputs and outputs in a market are fully adjusted to any changes, leading to a stable state of operations over time.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.