Demand in the refreshment beverage market has been changing due ...

[bucstennis@aim.com]

Demand in the refreshment beverage market has been changing due to
 
  A) changes in income.
  B) changes in taxes and subsidies.
  C) changes in the number of buyers.
  D) changes in tastes and preferences.

Question 2

If an employer cannot distinguish the ability of workers, a separating equilibrium will result.
 
  Indicate whether the statement is true or false

[lkoler]

Answer to Question 1

D

Answer to Question 2

False. When an employer cannot distinguish the abilities of the workers, the employer will pay all workers an average wage. This is a pooling equilibrium.

[bucstennis@aim.com]

Thank you

[lkoler]

No problemo