-Refer to the Graph Above to Answer This Question

question 22

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 wage rate of W₂ and quantity of Qb occur?

• A)Both the supply of and the demand for labour have decreased.
• B)The supply of labour has decreased and the demand has increased.
• C)The demand for labour has decreased and the supply has increased.
• D)W₂ is a non-equilibrium wage rate that may be the result of successful bargaining by a strong trade union.

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Definitions:

Jeweler

A person or business that designs, makes, sells, and repairs jewelry and watches.

Clothing Store

A retail establishment that sells garments and apparel for individuals of all ages.

Housing Development

The process and business of developing land into residential properties, including homes and apartment buildings.

Profits

The financial benefit realized when revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.