Suppose That the Market for Labor Is Initially in Equilibrium

question 164

Multiple Choice

Suppose that the market for labor is initially in equilibrium.An increase in the price of output will cause

• A) the equilibrium wage and the quantity of labor to both rise.
• B) the equilibrium wage and the quantity of labor to both fall.
• C) the equilibrium wage to rise and the quantity of labor to fall.
• D) the equilibrium wage to fall and the quantity of labor to rise.

---

Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed.

Gross Motor Skills

The abilities required to control the large muscles of the body for walking, running, sitting, and other activities.

Fine

In another context, refers to a monetary charge imposed as a penalty for an offense.

Reflexive

Refers to automatic responses to stimuli, not requiring conscious thought.