Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
Problem 3P
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Question
What changes occur in the market for shorts when the wage rate paid to garment workers increases?
The higher wage rate ________ the supply of shorts, which ________ the equilibrium price and ________.
A.
decreases; lowers; increases the quantity demanded of shorts
B.
increases; lowers; increases the demand for shorts
C.
decreases; raises; decreases the quantity demanded of shorts
D.
increases; raises; decreases the demand for shorts
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