The Data Shows the Market for Daycare Workers in a Particular

question 122

Multiple Choice

The data shows the market for daycare workers in a particular city:
(quantity of workers in hundreds)

-Refer to the information above to answer this question.What are the implications if this market is in equilibrium?

• A)The wage rate would be $5 an hour and there would be 400 unemployed daycare workers.
• B)The wage rate would be $5.50 an hour and there would be 200 unemployed daycare workers.
• C)The wage rate would be $6 an hour and there would be no unemployed daycare workers.
• D)The wage rate would be $6.50 an hour and there would be 200 unemployed daycare workers.
• E)The wage rate would be $5 an hour and there would be 1,300 unemployed daycare workers.

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Definitions:

Static Budget

A budget based on a fixed set of assumptions and not adjusted for actual activity levels.

Guest-Days

A measure used in the hospitality industry to quantify the total number of days guest have stayed.

Total Fixed Cost

It encompasses all the expenses that do not change regardless of the business activity volume, such as rent and salaries.

Servicing Materials

Supplies or materials used in the maintenance and repair of products or equipment.