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If Homer’s wages go up, the price of nuclear power will go up. If the price of nuclear power goes up, Moe will start charging more for beer. If Moe starts charging more for beer, Homer, Lenny, Carl, and Barney will demand higher wages at the nuclear power plant. This is an example of the a. Law of Diminishing Returns. b. Law of Diminishing Marginal Utility. c. Wage Price Spiral. d. Law of Supply.
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