Figure 19-1 
-Refer to Figure 19-1. Suppose the local labor market was in equilibrium to begin with but then the largest local employer decided to change its compensation scheme to $8 as shown. Which of the following compensation schemes could the graph be illustrating?
Definitions:
Debt
Money owed by one party to another under an agreement to repay borrowed funds or provided goods/services.
Profit
Profit represents the financial gains obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.
Breach Contract
A failure to perform any term of a contract, written or oral, without a legitimate legal excuse, which allows the other party to seek compensation.
Reasonable Care
A legal standard requiring individuals to act with the caution and attentiveness that a prudent person would under similar circumstances.
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