Table 43 Table 43 Shows the Demand and Supply Schedules for the Labour

question 112

Multiple Choice

Table 4.3
$\begin{array}{|c|c|c|}\hline \begin{array}{c}\text { Hourly Wage } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Quantity of } \\\text { Labour } \\\text { Supplied }\end{array} & \begin{array}{c}\text { Quantity of } \\\text { Labour } \\\text { Demanded }\end{array} \\\hline \$ 7.50 & 530,000 & 650,000 \\\hline 8.50 & 550,000 & 630,000 \\\hline 9.50 & 570,000 & 610,000 \\\hline 10.50 & 590,000 & 590,000 \\\hline 11.50 & 610,000 & 570,000 \\\hline 12.50 & 630,000 & 550,000 \\\hline\end{array}$
Table 4.3 shows the demand and supply schedules for the labour market in the city of Oshawa.
-Refer to Table 4.3.If a minimum wage of $9.50 an hour is mandated, what is the quantity of labour demanded?

• A)40,000
• B)570,000
• C)610,000
• D)1,180,000

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Definitions:

Substitution Effect

The change in quantity demanded of a good due to a change in its price, causing consumers to substitute it with other similar goods.

Labor Supplied

Refers to the total hours that workers are willing and able to work at a given wage rate, in a given time period.

Income Effect

Describes how a change in an individual's income affects their purchasing decisions.

Substitution Effect

The shift in buying habits because of variations in the prices of different products, causing individuals to substitute pricier options with more affordable ones.