Figure 18-10 -Refer to Figure 18-10. Assume W1 = $20 and W2

question 196

Multiple Choice

Figure 18-10
-Refer to Figure 18-10. Assume W1 = $20 and W2 = $22, and the market is always in equilibrium. A shift of the labor demand curve from D1 to D2 would

• A) increase the value of the marginal product of labor by $2.
• B) increase the value of the marginal product of labor by less than $2.
• C) decrease the value of the marginal product of labor by more than $2.
• D) not change the value of the marginal product of labor.

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