Use the Figure Below to Answer the Following Questions

question 2

Multiple Choice

Use the figure below to answer the following questions. Figure 17.3.2
-Refer to Figure 17.3.2.Suppose this labour market is initially in a monopsony situation and then the government introduces a minimum wage of $16 per hour.Choose the correct statement.

• A)The wage rate does not change,but employment decreases.
• B)The wage rate does not change,and employment stays the same.
• C)The wage rate rises to $16 per hour,and employment increases.
• D)The wage rate rises to $16 per hour,and employment decreases.
• E)The wage rate rises to $16 per hour,and employment does not change.

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Definitions:

British Airways

The flag carrier airline of the United Kingdom, known for its extensive global flight network.

Usage Rate

The quantity or the extent to which consumers use a product or service within a given timeframe.

Specific Period

A defined length of time during which certain events or conditions occur or are measured.

Patronage

The support or regular business given to a store, hotel, or other service provider by customers.