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.

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Definitions:

Systematic Observation

A methodical approach to data collection where the observer follows a strict set of guidelines to record behaviors, events, or other phenomena, often used in research to ensure reliability and validity.

Wilhelm Preyer

A German scientist recognized for his contributions to the study of child development and for being a pioneer in the field of developmental psychology.

Frequency

The rate at which something occurs over a particular period of time or in a given sample.

Plasticity

The brain's ability to change and adapt as a result of experience, including the formation of new neuronal connections.