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Andrew [12]
3 years ago
10

Suppose that the labor market for life guards is initially in equilibrium. Then swimming pool owners adopt a new labor-saving te

chnology that uses computers to monitor the locations of swimmers in the pool. What happens to the equilibrium wage and quantity of life guards?
a. Both the equilibrium wage and quantity increase.
b. Both the equilibrium wage and quantity decrease.
c. The equilibrium wage increases, and the equilibrium quantity decreases.
d. The equilibrium wage decreases, and the equilibrium quantity increases.

Business
1 answer:
Reil [10]3 years ago
5 0

Answer:

b. Both the equilibrium wage and quantity decrease.

Explanation:

When a market is in equilibrium, quantity supplied equals quantity demanded.

When swimming pools adopt labour saving technology, the quantity of labour demanded falls. This leads to a decrease in equilibrium wage and quantity . When supply exceeds demand, wages fall and labour would leave the lifeguard industry due to decreased demand.

Check out the attached image for a graphical explanation

I hope my answer helps you.

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True or false: apple computer, inc. collected information on the age of their customers. the youngest customer was 12 and the ol
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3 0
3 years ago
The market price of xyz corporation common stock is $55 and its quarterly dividend is $0.60. what is the stock's current yield?
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The market price of XYZ corporation common stock is $55 and its quarterly dividend is $0.60. 4.36% is the stock's current yield.

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4 0
2 years ago
When a firm or store offers a price reduction to customers who buy during off-peak periods throughout the year, we say the firm
german

Answer:

Seasonal.

Explanation:

A trade discount can be defined as a reduction in the price of goods given by a manufacturer to a wholesaler or retailer when they buy units of goods in larger quantities. This ultimately implies that, a trade discount is a percentage reduction in price given by a manufacturer to a wholesaler or retailer in order to encourage them to buy the goods in larger quantities and thus, increase revenue and profits.

Also, a seasonal discount can be defined as a reduction in the price of goods given during off-peak periods (off-season) in order to encourage customers to purchase a particular product.

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5 0
3 years ago
Assume the real rate of return is 3.37% and the inflation rate is 1.47%. Find the nominal rate of return using the exact formula
Citrus2011 [14]

Answer:

4.89%

Explanation:

Real rate of return = 3.37%

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The nominal rate of return is computed as shown below:

= [ (1 + real rate of return) x (1 + inflation rate) ] - 1

= [ (1 + 0.0337) x (1 + 0.0147) ] - 1

= (1.0337 * 1.0147) - 1

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= 4.889539%

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