Refer to the Graphs Shown

question 85

Multiple Choice

Refer to the graphs shown. If product demand increases from D₁ to D₂, causing the product price to increase, firm A (a supplier of this product) will:

• A) pay a higher wage rate and reduce employment from q2 to q1.
• B) pay a lower wage rate and increase employment from q₃ to q₄.
• C) increase employment because its MRP curve will shift rightward.
• D) decrease employment because its MRP curve will shift leftward.

---

Definitions:

Membership Dues

Fees paid by members to belong to an organization or group.

Lobby Representatives

Individuals or groups hired to influence lawmakers and government officials on behalf of specific interests or organizations.

High Schools

Educational institutions that provide secondary education, typically serving students from approximately 14 to 18 years of age.

City Council

The legislative body that governs a city, town, municipality, or local government area.