Exhibit 3-12 Supply and Demand Data

question 322

Multiple Choice

Exhibit 3-12 Supply and demand data
In Exhibit 3-12, at a price of $2.00 the market will experience a(n) :

• A)shortage of 150 units.
• B)surplus of 100 units.
• C)shortage of 100 units.
• D)equilibrium.

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Definitions:

Union Shops

Workplaces where employment is conditional on maintaining membership in a labor union, typically after a probationary period.

Open Shops

Workplaces where joining a union is not a condition for employment, allowing for both union and non-union employees.

Pure Monopsony Power

A market condition where there is only one buyer for a product or service, giving that buyer significant control over prices.

Strike and Lockout

Labor disputes where employees refuse to work (strike) and employers prevent employees from working (lockout) to settle disagreements, typically over employment terms.