This Table Shows the Labor Supply as a Function of Wages

question 62

Multiple Choice

This table shows the labor supply as a function of wages and the values of marginal product as a function of the number of laborers

-If the actual wage is $5,there will be

• A) downward pressure on the wage because of the excess supply of labor.
• B) no tendency toward change because $5 is the equilibrium wage.
• C) upward pressure on the wage because the labor supply function is horizontal.
• D) upward pressure on the wage because of the excess demand for labor.
• E) a reduction in the supply of labor.

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