Author Question: Refer to Figure 14.2. The substitution effect of the wage decrease on the amount of hours of leisure ... (Read 49 times)

anshika · **on:** Jul 1, 2018

Refer to Figure 14.2. The substitution effect of the wage decrease on the amount of hours of leisure is:

A) L1 to L0.
B) L0 to L1.
C) L1 to L2.
D) L2 to L0.
E) none of the above

Question 2

Refer to Figure 9.5. If the government establishes a price floor of 2.50 and farmers grow only the amount of berries that will be sold, the resulting deadweight loss will be

A) 1.50.
B) 200 pounds of berries.
C) 150.
D) 250.
E) 300.