The Figure Given Below Represents Equilibrium in the Labor Market

question 5

Multiple Choice

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor.Figure 14.6
In the figure,
D = MRP implies demand for labor = Marginal Revenue Product
MFC represents Marginal Factor Cost curve
S represents the supply curve of labor

-The more inelastic the supply of a particular resource:

• A)the higher are its transfer earnings.
• B)the higher is its economic rent.
• C)the higher are its total earnings.
• D)the higher is the elasticity of demand for the resource.
• E)the lower is the elasticity of demand for the resource.

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