​Figure 53

question 56

Multiple Choice

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-Assume that the price elasticity of demand for a commodity is 0.20. A 10 percent increase in the price of the commodity will be followed by a:

• A)20 percent increase in the quantity demanded.
• B)2 percent decrease in the quantity demanded.
• C)20 percent decrease in the quantity demanded.
• D)0.2 percent decrease in the quantity demanded.
• E)2 percent increase in the quantity demanded.

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Definitions:

Israel Hill

A community in Virginia formed by free African Americans in the early 19th century, symbolizing resilience and the quest for autonomy among free black populations in the Antebellum South.

Richard Randolph

An American planter and politician from Virginia, known for his participation in the political and social debates of his time.

Transportation Revolution

Refers to the rapid expansion of transportation networks, including roads, canals, and railroads, in the United States during the 19th century, which significantly influenced economic and social landscapes.

Cotton Economy

An economic system heavily reliant on the production, trade, and processing of cotton, particularly significant in the Southern United States before the Civil War.