Which of the following is an example of a temporary price differential in a resource market?
A)land downtown being more expensive than land in the suburbs
B)a famous professional basketball player being paid more than the average professional basketball player
C)cable television installers having a higher wage than telephone installers
D)an airline pilot being paid more than a flight attendant
E)a worker in a toxic waste plant earning more than a teacher

Question

Quizplus · Accepted Answer

The temporary price differential in a resource market refers to a difference in wages that is not based on the differences in the skills, education, or experience of the workers. The wage differential between cable television installers and telephone installers may be temporary because of an increase in demand for cable TV installations or a shortage of cable TV installers.

Which of the Following Is an Example of a Temporary