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

question 83

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

-According to Figure 16.2, assume that the market is at an initial equilibrium in which the labor supply is S₁ and the labor demand is D₁. The labor supply curve shifts from S₁ to S₂ but the wage remains unchanged at its previous equilibrium level. Which of the following is true?

• A)The economy is still in equilibrium.
• B)There is a shortage of 20 workers.
• C)There is a shortage of 30 workers.
• D)There is a surplus of 30 workers.
• E)There is a surplus of 20 workers.

---

Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment appraisal.

Quick Ratio

A liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventories.

Debt-Paying Ability

A measurement or assessment of a company's capacity to meet its debt obligations with its assets or income.

Interest Calculations

Interest Calculations involve determining the amount of interest due on loans, investments, or savings, based on the principal amount, rate of interest, and time period.