The Figures Given Below Show the Demand (D)and Supply (S)

question 48

Multiple Choice

The figures given below show the demand (D) and supply (S) curves of labor in two different markets. Figure 15.3
- Refer to Figure 15.3.If the wage rates in market A and market B were set at $20,then:

• A)both the markets would be in equilibrium.
• B)there would be a shortage of workers in market A and a surplus of workers in market B.
• C)there would be a shortage of workers in market B and a surplus of workers in market A.
• D)there would be a surplus of workers in both markets.
• E)there would be a shortage of workers in both markets.

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Definitions:

Covariance

A measure of how two random variables change together, indicating the direction of their linear relationship (positive, negative, or zero).

Coefficient of Correlation

A statistical measure that calculates the strength and direction of the relationship between two variables, ranging from -1 to 1.

Interquartile Range

A measure of variability based on dividing a data set into quartiles; it represents the range between the first and third quartile, excluding outliers.

Uninsured Retirees

Individuals who have retired and do not have insurance coverage, potentially facing risks related to healthcare costs.