-Refer to the Graph Above to Answer This Question

question 77

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 b occurs?

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

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