If a Battleship Sinks in a Canal Lock,the Water Level

question 86

Multiple Choice

If a battleship sinks in a canal lock,the water level in the lock

• A)rises.
• B)falls.
• C)remains unchanged.

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Definitions:

Substitution Effects

The change in the consumption pattern of goods due to a change in their relative price, leading consumers to substitute one good for another.

Labor Market

The input/factor market in which households supply work for wages to firms that demand labor.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute cheaper goods for more expensive ones.

Wage Decrease

A reduction in the pay rate of a worker or a group of workers.