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:

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The percentage of a loan that is charged as interest to the borrower, usually presented as an annual percentage of the remaining loan amount.

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