Table 4-7 Table 4-7 Shows the Demand and Supply Schedules

question 94

Multiple Choice

Table 4-7
Table 4-7 shows the demand and supply schedules for the labor market in the city of Pixley.
-Refer to Table 4-7. Suppose that the quantity of labor supplied increases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

• A) W = $8.50; Q = 550,000
• B) W = $12.50; Q = 630,000
• C) W = $9.50; Q = 610,000
• D) W = $11.50; Q = 610,000

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Definitions:

Pure Competitors

Firms within a market where numerous sellers offer highly similar products, ensuring no single company has control over the market price.

R&D

Research and Development, which refers to the activities companies undertake to innovate and introduce new products or services.

Innovation

The process of translating an idea or invention into a good or service that creates value and for which customers will pay.

Oligopolists

Firms or entities that dominate an industry or market in an oligopoly, where a small number of companies have significant market power and influence over prices and output.