The Figure Given Below Shows the Demand Curves (D₁ and D₂)

question 49

Multiple Choice

The figure given below shows the demand curves (D₁ and D₂) and supply curves (S₁ and S₂) of labor in the labor market.Figure: 16.2

-In Figure 16.2, the initial labor supply is S₁ , and the labor demand is D₁. If the wage rate is $6, which of the following is correct?

• A)The actual wage is above the equilibrium wage.
• B)There is a shortage of 30 workers.
• C)There is a shortage of 20 workers.
• D)There is a shortage of 10 workers.
• E)The market is in equilibrium.

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