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

question 255

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 decreases by 80,000 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 = 550,000
• C) W = $8.50; Q = 630,000
• D) W = $11.50; Q = 610,000

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