A Net Increase in People's Preferences for Work Relative to Leisure

question 28

Multiple Choice

A net increase in people's preferences for work relative to leisure in a particular market will:

• A)increase labor supply,reducing the wage rate
• B)decrease labor supply,increasing the wage rate
• C)increase labor demand,increasing the wage rate
• D)decrease labor demand,reducing the wage rate

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Definitions:

Demand Function

A mathematical equation that specifies the quantity of a good or service demanded at various price levels, holding all other factors constant.

Price Elasticity

An economic metric indicating the responsiveness of the demand for a product or service to variations in its price.

Peck

A unit of volume for dry goods, historically used in agriculture and equal to about 8.809 or 9 liters in the US and UK respectively.

Bushel

A unit of volume that is used for measuring agricultural commodities, varying in actual volume by the product being measured.