The Figure Given Below Shows the Demand Curves (D₁ and D₂)and

question 36

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: 15.2 According to Figure 15.2, assume that the market is in an initial equilibrium in which the labor supply is S₁ and the labor demand is D₁.Then labor supply shifts from S₁ to S₂ but the wage remains 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.

Differentiate between one-tail and two-tail tests and their implications on p-values and error types.

Formulate null and alternative hypotheses for various testing scenarios.

Apply the normal approximation to the binomial distribution in hypothesis testing.

Understand the conditions for using z-tests in hypothesis testing and confidence interval estimation.