Figure 18-10 -Refer to Figure 18-10. If the Relevant Labor Demand Curve

question 199

Multiple Choice

Figure 18-10
-Refer to Figure 18-10. If the relevant labor demand curve is D2 and the current wage is W1,

• A) there is a surplus of labor.
• B) there is a shortage of labor.
• C) the quantity of labor supplied exceeds the quantity of labor demanded.
• D) workers are failing to take into account the work-leisure tradeoff in deciding what quantity of labor to supply at alternative wages.

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