In the Following Graph, S and D Represent the Supply

question 22

Multiple Choice

In the following graph, S and D represent the supply and demand curves respectively, in the labour market. Refer to the graph to answer the question. When the wage in the market is set at £15:

• A) there is a surplus of 300 workers.
• B) there is a shortage of 100 workers.
• C) there is a surplus of 200 workers.
• D) there is a shortage of 275 workers.

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Definitions:

Spaghetti Consumption

The act of consuming spaghetti, a long, thin, cylindrical pasta of Italian origin.

Romeo

A character from William Shakespeare's tragedy "Romeo and Juliet," often symbolizing romantic love.

Juliet

A fictional character from Shakespeare's tragedy "Romeo and Juliet," symbolizing young love and tragic romance.

Social Welfare Function

A theoretical framework in economics that represents preferences over social states or outcomes, aiming to aggregate individual utilities into a measure of collective welfare.