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

question 183

Multiple Choice

Table 4-4

Table 4-4 shows the demand and supply schedules for the labor market in the city of Pixley.
-Refer to Table 4-4.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:

Simple Rate of Return

A method of evaluating the financial performance of an investment by dividing annual incremental operating income by initial investment.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Accounting Net Income

The profit of a company after all expenses and taxes have been deducted from revenues.

Net Present Value Method

A financial analysis tool used to evaluate the profitability of an investment, taking into account the time value of money.