If the Firms in an Industry Could Take Advantage of a Reduced

question 76

Multiple Choice

If the firms in an industry could take advantage of a reduced wage, how would one best describe the firms' demand for labor? The MRP_L:

• A) schedule would remain unchanged, and the firms would hire more labor at the lower wage.
• B) schedule would shift to the left and the firms would move down the new schedule.
• C) schedule would shift to the right and the firms would move down the new schedule.
• D) none of the above

---

Definitions:

Substitutes

are goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Demand Curve

A graph showing the relationship between the quantity of a good or service that consumers are willing to buy and its price.

Price

The pecuniary sum needed, anticipated, or disbursed for purchasing something.

Demand Curve

A Demand Curve illustrates how the quantity demanded of a good or service varies with its price, typically showing an inverse relationship.