The Labor Supply Curve Is Given by the Equation L_S

question 37

Multiple Choice

The labor supply curve is given by the equation L_S = 3W + 20 and the labor demand curve is given by the equation L_D = 80 − 2W. If the wage is $20, there will be a _________ of _________ workers.

• A) surplus; 80
• B) shortage; 40
• C) shortage; 80
• D) surplus; 40
• E) surplus; 20