In the Following Graph, Q_S1 and Q_S2 are the Supply

question 8

Multiple Choice

In the following graph, Q_S1 and Q_S2 are the supply curves for labour and Q_D1 and Q_D2 are the demand curves for labour. Refer to the graph to answer the question. When Q_S1 shifts to Q_S2 and Q_D1 shifts to Q_D2, _____.

• A) the supply of labour exceeds the demand for labour
• B) the demand for labour exceeds the supply of labour
• C) the quantity of labour demanded falls
• D) the equilibrium quantity of labour remains constant

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Definitions:

Declining Industry

Declining Industry refers to a sector experiencing a long-term drop in demand or output, often due to technological changes, market saturation, or shifts in consumer preferences.

Agriculture

The activity of farming the land, producing crops, and keeping animals with the aim of generating food, textiles, and additional items.

USDA

The United States Department of Agriculture (USDA) is a federal agency responsible for developing and executing federal laws related to farming, forestry, and food.

Technological Changes

Innovations or improvements in technology that affect productivity, efficiency, and competitiveness in an industry or economy.