Suppose That the Market for Labor Is Initially in Equilibrium

question 3

Multiple Choice

Suppose that the market for labor is initially in equilibrium.If the firm employs labor-saving technology,

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

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Definitions:

Normal Expectancy

The statistical average number of years an individual is expected to live based on demographic factors like their current age and sex.

Anopheles Mosquito

A genus of mosquitoes that serves as the primary vector for malaria in humans by transmitting the Plasmodium parasite.

Parasitic Disease

An illness caused by infections with parasitic organisms such as protozoa, worms, or insects.

Vector

An organism, typically an insect or arthropod, that transmits a disease or parasite from one animal or plant to another.