How Did the Spread of the Internet Affect the Market

question 228

Multiple Choice

How did the spread of the Internet affect the market for newspapers?

• A) Demand increased, causing the price to rise.
• B) Demand decreased, causing the price to fall.
• C) Supply decreased, causing the price to rise.
• D) Supply increased, causing the price to fall.

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Definitions:

Compensating Differential

A difference in wage rates designed to offset the desirability or undesirability of a job or job conditions.

Compensating Differential

A difference in wage rates designed to offset the desirability or undesirability of a job's attributes.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Compensating Differential

A difference in wages that arises to compensate workers for non-monetary differences in different jobs, such as risk or undesirable location.