The First 3 Columns of the Following Table Show Data

question 57

Multiple Choice

The first 3 columns of the following table show data for a representative firm in an industry.The last 3 columns show the market demand and supply for the type of labour employed by this firm.

-What happens if the demand for labour increases more than does the supply of labour?

• A)Wage rates will increase.
• B)Wage rates will decrease.
• C)The effect on wage rates is indeterminate.
• D)The quantity of hours worked will decline.