-Refer to the Graph Above to Answer This Question

question 101

Multiple Choice

-Refer to the graph above to answer this question.Suppose that the original supply and demand curves for labour are S₁ and D₁ and that the market is in equilibrium at point e.What can you conclude has happened if a new equilibrium at a occurs?

• A)The supply of labour,the wage rate and the equilibrium quantity have all increased.
• B)The demand for labour,the wage rate and the equilibrium quantity have all increased.
• C)The wage rate and the equilibrium quantity have increased while the supply of labour has decreased.
• D)The wage rate and the equilibrium quantity have increased while the demand for labour has decreased.
• E)The wage rate and the equilibrium quantity have increased while both the demand for and the supply of labour has increased.