Which of the Following Statements Is TRUE About the Market

question 193

Multiple Choice

Which of the following statements is TRUE about the market demand curve for labor?

• A) The market demand curve is the sum of the individual firm's demand curve.
• B) The market demand curve will be perfectly inelastic since firms need labor.
• C) The market demand curve shows the quantities of labor demanded by all firms in the industry at various marginal products.
• D) The market demand curve depends upon labor productivity, the wage rate and the price of the final product.

---

Definitions:

Sellers

Market participants involved in providing goods or services for purchase, playing a key role in the supply side of the economy.

Equilibrium Price

The market price at which the quantity demanded equals the quantity supplied, leading to a stable market condition.

Price Floor

A government- or authority-set minimum price for a particular good or service, designed to protect producers.

Airline Tickets

Certificates issued by airlines that confirm a passenger's booking and are exchanged for a boarding pass to travel on an airplane.