Wage Rate Quantity of Labor Demanded $16 800

question 202

Multiple Choice

Wage Rate Quantity of Labor Demanded $16 800
14 1,000
12 1,200
10 1,600
8 1,800
Refer to the given data.Suppose that the union that provides labor to firms in this market successfully negotiates an increase in the wage rate from $8 to $10.As a result of the wage increase, firms will hire

• A)fewer workers, and the total paid out for wages will decline.
• B)fewer workers, but the total paid out for wages will increase.
• C)fewer workers, but the total paid out for wages will remain unchanged.
• D)more capital, if capital and labor are used in fixed proportions in production.

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Definitions:

Intangible Products

Goods that cannot be touched, measured, or physically counted, typically services or digital items.