FIGURE 3- 3 -Refer to Figure 3- 3. at a Price of P3

question 85

Multiple Choice

FIGURE 3- 3
-Refer to Figure 3- 3. At a price of P3 there is excess in the market for X and pressure for the price to .

• A) demand; rise
• B) supply; fall
• C) supply; rise
• D) demand; fall

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Definitions:

Wage Rate

The fixed amount of compensation or payment made to an employee by an employer in return for work performed, typically expressed on an hourly, daily, or piecework basis.

Labor

The exertion of human energy, both bodily and cognitive, employed in generating goods and services.

Leisure

Free time when one is not working or occupied, which can be used for rest, entertainment, or activities one enjoys.

Nonlabor Income

Income received that is not related to wages or salaries, such as income from investments, pensions, or social security.