The answer is : about 40 Percent of the households
He argued that households with an annual income less than $50,000 dollars prefer to spend their disposable income on things like daily necessities or their child's college fund
Answer:
C. A situation where no economic agent would benefit by changing his or her behavior
Explanation:
An economic equilibrium is when the agents are optimizing their decisions and opposing market forces are equal. This point allows the economic agents to maximize their utility and any change from this point will cause all agents to move away from potential maximum benefits.
In a natural equilibrium there is usually no government intervention so option A is false. Option B gives only one agent potential benefits and as such there is no equilibrium. Option D is conditional and may or may not happen as when the agents find missing information they would optimize again and move to an equilibrium.
Hope that helps.
Senator approxmire is Incorrect because the monopsonist's effective MRC curve becomes ABCD, which means that it<span> would choose to hire more workers, from L1 to L2, following the imposition of the minimum wage.
When monopsonist exist, the majority of workers within a certain area will be employed by a single entity. When we enacted minimum wage, indeed the company's salary expense will be increased, but this will goes along with the total productivity increased by the happy employees.</span>
