primarily determine the price.

40. Assume that the supply of low-skilled workers is fairly elastic, but the employers’ demand for such

workers is fairly inelastic. If the policy goal is to expand employment for low-skilled workers, is it better to

focus on policy tools to shift the supply of unskilled labor or on tools to shift the demand for unskilled

labor? What if the policy goal is to raise wages for this group? Explain your answers with supply and

demand diagrams.

Access for free at openstax.org
Consumer Choices

6

FIGURE 6.1 Investment Choices We generally view higher education as a good investment, if one can afford it,

regardless of the state of the economy. (Credit: modification of “Commencement” by roanokecollege/Flickr, CC BY

2.0)

CHAPTER OBJECTIVES

In this chapter, you will learn about:

• Consumption Choices

• How Changes in Income and Prices Affect Consumption Choices

• How Consumer Choices Might Not Always be Rational

Introduction to Consumer Choices
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