If the Demand for Labour Is Unchanged, an Increase in the Supply

question 213

Multiple Choice

If the demand for labour is unchanged, an increase in the supply of labour will lead to

• A)a decrease in the quantity of labour demanded and a decrease in the equilibrium wage.
• B)an increase in the quantity of labour demanded and a decrease in the equilibrium wage.
• C)an increase in the quantity of labour demanded and an increase in the equilibrium wage.
• D)a decrease in the quantity of labour demanded and an increase in the equilibrium wage.

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Definitions:

Lockbox System

A service offered by banks to companies for the collection of payments from customers, wherein the payments are sent directly to a post office box, thereby speeding up collection times.

Processing Time

The amount of time required to complete a specific process or task, often related to manufacturing or computational operations.

Preauthorized Payment

A financial arrangement that allows a business or individual to automatically debit funds from a customer's bank account for recurring expenses.

Total Collection Time

The period it takes for a business to convert its credit sales into cash, encompassing the entire process from sale to cash collection.