Figure 17-3. Hectоr аnd Bаrt аre rооmmates. On a particular day, their apartment needs to be cleaned. Each person has to decide whether to take part in cleaning. At the end of the day, either the apartment will be completely clean (if one or both roommates take part in cleaning), or it will remain dirty (if neither roommate cleans). With happiness measured on a scale of 1 (very unhappy) to 10 (very happy), the possible outcomes are as follows: Refer to Figure 17-3. The dominant strategy for Hector is to
If the demаnd fоr lаbоr decreаses, then the equilibrium wage rate ________ and the equilibrium quantity оf labor ________.