The Local Labor Market for Lawn-Mowing Workers Is Initially in Equilibrium.These

question 2

Multiple Choice

The local labor market for lawn-mowing workers is initially in equilibrium.These workers are also able to clean swimming pools and have no preference for one job over the other.If the wage rate for pool cleaning rises,which of the following would occur in the lawn-mowing labor market?

• A)Both labor demand and labor supply will drop,leading to a lower wage rate and lower employment.
• B)Both labor demand and labor supply will rise,leading to a higher wage rate and lower employment.
• C)Labor supply will drop,leading to a higher wage rate and lower employment.
• D)Labor supply will drop,leading to a lower wage rate and lower employment.
• E)Labor demand will drop,leading to a lower wage rate and lower employment.

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Definitions:

Traditional Format

A standard format used in accounting or reporting that follows longstanding, established guidelines.

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by total sales revenue, expressed as a percentage, indicating the financial health and profitability of a company's core activities.

Cost Of Goods Sold

The particular expenses associated with generating the goods a business sells, covering labor and materials.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.