Exhibit 3-12 ---------------------------------------------------Quantity Supplied --------------------------------------------

question 179

Multiple Choice

Exhibit 3-12 ---------------------------------------------------Quantity Supplied --------------------------------------------
Assume that Aline, Bentley, Calvin, and Daniel are the only sellers in this market.
Refer to Exhibit 3-12.  Fill in blanks (E) and (F) respectively with the market quantity supplied at given each price.

• A)10.50; 12.91
• B)47; 52
• C)99; 131
• D)105; 142

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Definitions:

Real Wages

Wages that have been adjusted for inflation, reflecting the purchasing power of income.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, across all jobs available in the economy.

Monopsonistic Employer

A labor market condition where a single employer significantly controls the market for workers and can dictate terms of employment.

Competitive Market

A market structure characterized by a large number of buyers and sellers where no single participant can significantly influence price.