For an Input with a Vertical Supply Curve,an Increase in the Demand

question 79

Multiple Choice

For an input with a vertical supply curve,an increase in the demand for the input will lead to:

• A)an increase in economic rent which is less than the payment to the input.
• B)an increase in economic rent equal to the payment to the input.
• C)a decrease in economic rent equal to the payment to an input.
• D)a decrease in economic rent which is higher than the payment to the input.

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Definitions:

Income Inequality

The imbalanced dispersion of income across various economic participants, including individuals and households.

Lorenz Curve

An illustrated chart that maps out the distribution of wealth or income among individuals in a society, revealing disparities.

Income Inequality

The unequal distribution of income among members of a society.

Gini Ratio

An assessment of the variation in income levels within a population, where 0 reflects equality in earnings and 1 reflects the highest possible inequality.