What Happens to the Equilibrium Wage and Quantity of Labor

question 5

Multiple Choice

What happens to the equilibrium wage and quantity of labor if output price rises?

• A)The equilibrium wage and the equilibrium quantity of labor rise.
• B)The equilibrium wage and the equilibrium quantity of labor fall.
• C)The equilibrium wage falls and the equilibrium quantity of labor rises.
• D)The equilibrium wage rises and the equilibrium quantity of labor falls.

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Definitions:

Media Advertising

The use of various media channels, such as TV, radio, and digital platforms, to promote products, services, or brands to a wide audience.

Surplus

An excess of something, such as goods, services, or resources, beyond what is needed or used.

Balance of Trade

The difference in value between a country's imports and exports over a certain period.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a country's economy and trade balance.