Psychology 1000 Study Guide - Midterm Guide: Marginal Utility, Economic Equilibrium, Indifference Curve

• School: Western University
• Department: Psychology
• Course: Psychology 1000
• Professor: Mark Holden

Document Summary

In an unregulated labour market, a decrease in the demand for labour causes the wage rate to rise. 1: at equilibrium price, all those who can afford housing will achieve it, a rent ceiling above equilibrium price will not result in black markets. 4: an increase in the minimum wage will reduce the number of workers employed, minimum wage laws, when above market equilibrium increase the amount of time people, perfectly inelastic demand -buyers pay. They will pay whatever the price for that product. A quota limits the production: subsidy makes the price fall, shifts the equilibrium rightward along the demand, increasing it because the price drop. Multiple choice: the short run supply curve for rental housing is positively sloped because the current stock. 2: black market prices below the rent ceiling prices not a likely outcome, the minimum wage set below equilibrium would not create unemployment.