If the Demand for Labor Decreases,then the Equilibrium Wage Rate

question 142

Multiple Choice

If the demand for labor decreases,then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

• A) falls; increases
• B) might rise, fall, or not change; increases
• C) rises; might increase, decrease, or not change
• D) falls; decreases
• E) falls; does not change

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Definitions:

Nonlinear Optimization Model

This is a mathematical model involving an optimization problem where the objective function or any of the constraints are nonlinear.

Integer

A whole number that can be positive, negative, or zero, not including fractions or decimals.

Nonlinear Optimization Model

A mathematical problem solving framework designed to optimize a nonlinear objective function subject to nonlinear constraints.

Mixed Integer Linear Optimization Model

An optimization model that seeks the best solution from a set of linear equations and inequalities, where some of the decision variables are constrained to be integer values.