Suppose That the Demand for Labour Is Given by P

question 73

Multiple Choice

Suppose that the demand for labour is given by P = 30 - Q and the supply of labour is given by P =
2Q. Which of the following is true if a minimum wage of 24 is imposed on the labour market?

• A)the dead weight loss will be 24.
• B)unemployment will be 2.
• C)the number of people laid off will be 6.
• D)the minimum wage is not binding.

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Definitions:

Repetitive Manufacturing

A production method where the same products or components are produced in a continuous flow or on a repetitive basis.

Intermittent Process

Refers to a production system where the flow of materials is irregular, handling a variety of products or services.

First Come

A principle where services or resources are allocated to recipients in the order of their arrival or request.

First Served

First served, traditionally known as "first come, first served," is a service principle where customers are attended to in the order of their arrival or request.