The Following Figures Show the Demand and Supply of Labor

question 18

Multiple Choice

The following figures show the demand and supply of labor in two different types of labor market. Figure 15.5 In the figures,
D: Demand curve for labor
S: Supply curve of labor
MRP: Marginal revenue product
MFC: Marginal factor cost
Refer to Figure 15.5.If a minimum wage of $10 is set by the government, then in market A:

• A)a shortage of 20 labor hours is created.
• B)the quantity demanded for labor rises to 20 labor hours.
• C)a shortage of 15 labor hours is created.
• D)a surplus of 20 labor hours is created.
• E)a surplus of 10 labor hours is created.

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Definitions:

Situation

The physical, social, and cultural circumstances or surroundings that define the phenomenon of interest.

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Researchers or experts who study human society and social relationships through various methodologies.

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The alteration of behavior by the subjects of a study due to their awareness of being observed.

Social Scientists

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