-Refer to the Graph Above to Answer This Question

question 145

Multiple Choice

-Refer to the graph above to answer this question.Suppose that the original supply and demand curves for labour are S₁ and D₁ and that the market is in equilibrium at point e.What can you conclude has happened if a new equilibrium at c occurs?

• A)The supply of labour,the demand for labour,the wage rate and the equilibrium quantity have all increased.
• B)The demand for labour and the wage rate have both increased while the supply of labour and the equilibrium quantity have both decreased.
• C)The demand for labour and the wage rate have both increased while the supply of labour has decreased and the equilibrium quantity has not changed.
• D)The wage rate has increased,while both the supply of and demand for labour have decreased and the equilibrium wage has remained unchanged.
• E)The wage rate and the equilibrium quantity have increased while both the demand for and the supply of labour has increased.

---

Definitions:

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital.

Income Taxes Paid

Refers to the actual amount of money an individual or corporation pays to the government in taxes based on income levels for a specific period.

Pension Liability Account

A pension liability account is a financial accounting record that reflects the amount a company owes to its current and future retirees' pension plans.

Indirect Method

A technique used in cash flow statements where net income is adjusted for non-cash items and changes in working capital to calculate cash flow from operating activities.