The Three Diagrams Below Show the Supply and Demand for Teenage

question 66

Multiple Choice

The three diagrams below show the supply and demand for teenage babysitters in one local area. The initial supply curve is S 0 in all cases.

-Refer to Figure 14-3. Suppose all of the teenage babysitters in one local area form an association and set a minimum acceptable wage of $8 per hour. Which diagram illustrates the new supply curve S A) for babysitters?

• A) diagram 1
• B) diagram 2
• C) diagram 3
• D) none of the diagrams
• E) any of the diagrams

---

Definitions:

Expected Value

The mathematical average of all possible outcomes of a random variable, weighted by their respective probabilities.

Stocks

Shares of ownership in a company, which represent a claim on the company's earnings and assets.

Investment

Applying resources, typically financial, in order to gain income or profit.

Portfolio

An aggregation of financial instruments such as company shares, debt securities, tangible commodities, available cash, and cash-like resources, including mutual funds and ETFs.