Use the Accompanying Table, Which Shows the Supply and Demand

question 6

Multiple Choice

Use the accompanying table, which shows the supply and demand schedules for workers in the country of Hovian, to answer the questions that follow.

-If the wage is set temporarily at $15,it will need to __________ in order to restore equilibrium.

• A) decrease to zero
• B) increase to $35
• C) fall
• D) increase
• E) remain unchanged

---

Definitions:

Fixed Costs

Outgoings that remain invariable, regardless of operational output or sales numbers, encompassing costs like rent, employee pay, and safeguarding premiums.

Long-run Average Demand

is the average demand forecasted over a longer period, helping in strategic planning and capacity decisions.

Order Fulfillment Department

A unit within a company responsible for processing customer orders, ensuring products are delivered to customers efficiently and satisfactorily.

Operating Divisions

Operating divisions are distinct parts of a company that focus on specific areas of operation or markets, often acting semi-independently within the larger organization.