Refer to the Graph Shown

question 108

Multiple Choice

Refer to the graph shown. In the long run supply will become:

• A) more elastic, rotating from S₀ to S₁, creating a larger shortage with a price ceiling of P₂.
• B) less elastic, rotating from S₀ to S₁, creating a larger shortage with a price ceiling of P₂.
• C) more elastic, rotating from S₀ to S₁, creating a smaller shortage with a price ceiling of P₂.
• D) less elastic, rotating from S₀ to S₁, creating a smaller shortage with a price ceiling of P₂.

---

Definitions:

Maternity Leave

A period of absence from work granted to a mother before and after giving birth to recover and care for the newborn child.

BFOQ Defense

A legal justification used by employers to hire based on specific characteristics, like sex or age, that are normally prohibited by discrimination laws, when it's deemed reasonably necessary to the operation of the business or job.

Fair Labor Standards Act

United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

Minimum Wages

The lowest legal hourly rate of pay that employers can compensate workers, as mandated by federal or state law.