Table 4-3 Table 4-3 Shows the Demand and Supply Schedules for the and Supply

question 115

Multiple Choice

Table 4-3

Table 4-3 shows the demand and supply schedules for the low-skilled labor market in the city of Westover.
-Refer to Table 4-3.Suppose that the quantity of labor demanded 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 = $10.00; Q = 390,000
• B) W = $9.50; Q = 380,000
• C) W = $8.50; Q = 380,000
• D) W = $8.00; Q = 390,000

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Definitions:

Honey

A sweet, viscous food substance made by bees from the nectar of flowers.

Expectation

The anticipation or belief regarding the future performance of the economy, markets, or individual financial assets.

CDs

Certificates of Deposit, a financial product offered by banks that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period.

Price Increase

A rise in the cost of goods or services.