Refer to the Information Provided in Figure 14

question 63

Multiple Choice

Refer to the information provided in Figure 14.2 below to answer the questions that follow.
Figure 14.2
-Refer to Figure 14.2.According to classical economists if the wage rate is

• A)$15,the wage rate will decline to eliminate the surplus.
• B)$15,the wage rate will increase to eliminate the shortage.
• C)$6,the wage rate will decline to eliminate the surplus.
• D)$15,the wage rate will decline to eliminate the shortage.

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Definitions:

Infinitely Price Elastic

Describes a situation where the quantity demanded or supplied changes by an unlimited amount in response to any change in price.

Total Revenues

The overall amount of money generated by a business from its normal business operations.

Total Costs

The complete amount of money spent by a business for producing or acquiring goods or services, including both fixed and variable costs.

Economic Profits

Economic profits are the financial gains that exceed the total costs of production, including both explicit and opportunity costs, indicating an above-normal return.