# economics

posted by .

The price of a wideget increases by 90%. What effect would we expect this to have on the equilibrium wage rate of workers who make widgets?

Would this increase, decrease, or keep the wage rate the same?

• economics -

decrease

## Similar Questions

1. ### Economics

Suppose the minimum wage is above the equilibrium wage in the market for unskilled labor. Using a supply-and-demand diagram of the market for unskilled labor, show the market wage, the number of workers who are employed, and the number …
2. ### Econ MC

Suppose that the equilibrium price in the market for widgets is \$5. If a law reduced the maximum legal price for widgets to \$4, a. consumer surplus would necessarily increase even if the lower price resulted in a shortage of widgets. …
3. ### More Economics

I have an lazy instructor using test bank questions unrelated to my text and need some help. The second question is "anything that makes the efficiency wage rise relative to the market-clearing wage will...A) increase both the quantity …
4. ### Microeconomics

I am on the chapter for the factors of production: Question: A firm that hires two types of workersâ€”some with computer skills and some without. If technology advances so that computers become more useful to the firm, what happens …
5. ### microeconomics: work-leisure model

Consider the work-leisure model. Assume leisure is a normal good and suppose the wage rate(W) increases, then in this case we will have the following. Substitution effect: W increases => hours of leisure decrease Income effect has …
6. ### Managerial Economics

Given the demand & supply Function for product 'x' at california university have been estimated as: Qd= 5000- 4 (price)+ 0.2 (pop) Qs=-300 +5 (price)+ 0.5 (wage rate) i) determine the equilibrium price & quantity of product X. ii) …
7. ### Economics

What is the effect on the price of hotdogs and the quantity of hotdogs sold if: a.) The price of a hamburger rises?
8. ### ECONOMICS

1) If the price of a product produced in a competitive market increases, which of the following is most likely to occur in the labor market for workers who produce the product?
9. ### ECONOMICS

PLEASE HELP ME WITH THESE!!!!!!!! 1) If the price of a product produced in a competitive market increases, which of the following is most likely to occur in the labor market for workers who produce the product?
10. ### economics

Think about how each scenario would affect the price of khaki pants. a.A new technology reduces the time it takes to make a pair of khaki pants. b.The price of the cloth used to make khaki pants falls. c.The wage rate paid to garment …

More Similar Questions