Table 54 Table 5-4 Shows the Demand and Supply Schedules

question 138

Multiple Choice

Table 5.4 Table 5-4 shows the demand and supply schedules for labour market in the city of Pixley.
-Refer to Table 5.4.Suppose that the quantity of labour demanded decreases by 80 000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labour?

• A)W = $8.50; Q = 550 000
• B)W = $12.50; Q = 630 000
• C)W = $9.50; Q = 570 000
• D)W = $9.50; Q = 590 000

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Definitions:

Operating Budget

A detailed projection of all expected income and expenses based on forecasted sales revenue during a specified period, usually a fiscal year.

Direct Labor Budget

A financial plan that estimates the cost of the direct labor required to meet production needs, including wages of workers who are directly involved in the manufacturing of goods.

Cash Budget

A forecast of cash inflows and outflows over a specific period, used to manage liquidity and ensure sufficient cash is available for operations.

Operating Budgets

Detailed projections of income and expenses related to a company's operational activities for a specific period, typically one year.