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

question 8

Multiple Choice

Table 4-4
Table 4-4 shows the demand and supply schedules for the low-skilled labor market in the city of Westover.
-Refer to Table 4-4.Suppose that the quantity of labor demanded increases by 40,000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

• A)W = $10.00; Q = 390,000
• B)W = $9.50; Q = 380,000
• C)W = $8.50; Q = 380,000
• D)W = $8.00; Q = 390,000

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Definitions:

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides benefits to retirees and disabled people.

Hospital Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured while in a hospital.

Double Time

A rate of pay that is twice the standard rate, often paid for overtime work.

Time and a Half

A rate of pay that is 1.5 times the employee's regular hourly rate, often paid for overtime work.