Author Question: The figure above shows a labor market. If there is a monopsony in this labor market, then increasing ... (Read 72 times)

azncindy619 · **on:** Jun 29, 2018

The figure above shows a labor market. If there is a monopsony in this labor market, then increasing the minimum wage from 3 per hour to 5 per hour

A) will increase the quantity of labor employed.
B) will leave unchanged the quantity of labor employed.
C) will decrease the quantity of labor employed.
D) could increase, decrease, or leave unchanged the quantity of labor employed.

Question 2

If the price of a pumpkin rises and consumers' total expenditure on pumpkins increases, then the demand for pumpkins is inelastic.

Indicate whether the statement is true or false