Refer to the Figure Below: Let Demand Remain Constant

question 5

Multiple Choice

Refer to the figure below: Let demand remain constant at D; an increase in wages causes firms to be willing and able to sell 150 fewer units at each price than they were before the wage increase.

• A)The new equilibrium price and quantity will be P = $6 and Q = 150.
• B)The new equilibrium price and quantity will be P = $6 and Q = 400.
• C)The new equilibrium price and quantity will be P = $7 and Q = 250.
• D)The new equilibrium price and quantity will be P = $8 and Q = 300.

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