Question

1. A firm negotiates a new labor contract with a higher average hourly wage. What is the most likely effect of the higher wage on the firm's price and output? a) Neither price nor output will be affected. b) Price will increase but output will not change. c) Both price and output will increase. d) Price will not change but output will decrease. e) Price will increase and output will decrease. 2. Other factors constant, a change in will cause a shift in a firm's demand curve. a) the price of the good or service b) the quantity of the good offered for sale c) the wages paid to labor employed d) the general income level of consumers e) the technology used in the production of the good or service 3. If the price of a good or service increases, what happens to the firm's demand curve? a) The demand curve shifts inward toward the origin. b) The demand curve shifts outward away from the origin. c) There is an upward movement along the demand curve. d) There is a downward movement along the demand curve. e) The slope of the demand curve changes.

Answer 1

Here are the correct options. Pl rate. Thanks

1 e- price will increase and output will decrease

2- d- the general income level of consumers.

3- c- There is an upward movement along the demand curve.