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

question 8

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 Refer to Figure 15.2.At the initial equilibrium (when demand is D₁ and supply is S₁) , the wage rate and labor employment are:

• A)$7 and 20 laborers.
• B)$8 and 30 laborers.
• C)$6 and 50 laborers.
• D)$5 and 20 laborers.
• E)$5 and 10 laborers.

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Definitions:

Cost Function

A mathematical formula that calculates the total cost incurred by a company to produce a specific quantity of a product or service.

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A mathematical expression that describes how the costs incurred by a firm or individual vary with the level of activity or output.