The Accompanying Graph Depicts Mighty Max's Labor Demand for His

question 27

Multiple Choice

The accompanying graph depicts Mighty Max's labor demand for his duffle-bag business. The labor demand curve shown is calculated based on a duffel-bag price of $10. If the price increases to $20 per bag, what happens to the labor demand curve?

• A) It shifts to the left.
• B) It shifts to the right.
• C) It remains unchanged.
• D) The firm moves upward along the labor demand curve.
• E) The firm moves downward along the labor demand curve.

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Definitions:

Liquidated Debt

Debt for which there is no dispute between the parties about the fact that money is owed and the amount of money owed.

Enforceable Accord

An agreement that is legally binding and can be upheld in court.

Consideration

Something of value that is given by both parties to a contract as the agreed-upon price or exchange for the contractual promises.

Valid Consideration

An essential element of a contract, which constitutes something of value exchanged between the contracting parties.