Exhibit 11- 7 Demand for Labor Curves

question 11

Multiple Choice

Exhibit 11- 7 Demand for labor curves
​
-​In Exhibit 11-7, which of the following could have caused the shift in labor demand from D₁ to D₂?​

• A) Increase in wages.
• B) Decrease in wages.
• C) Decrease in price of product.
• D) Decrease in demand for the product.
• E) Increase in the demand for the product.

---

Definitions:

Interest Rate Sensitivity

A measure of how much the price of an investment, particularly bonds, changes in response to changes in interest rates.

Low Coupon Bond

A bond that pays interest at a lower rate than the market rate, typically resulting in its selling at a discount to face value.

Interest Rates

The rate at which a borrower pays interest to a lender for borrowing money.

Coupon Payments

Regular interest payments made to bondholders during the lifetime of the bond.