In the Following Graph, Q_S1 is the Supply Curve for Labour

question 89

Multiple Choice

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

• A) the equilibrium quantity of labour and the wage level remain unchanged
• B) the quantity of labour supplied increases
• C) the wage level falls to W₃
• D) the supply of labour exceeds the demand for labour

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