Consider the following demand and supply curves in factor markets. FIGURE 13- 4
-Refer to Figure 13- 4. The panel that best illustrates the supply of a factor to the economy as a whole is
A) 1.
B) 2.
C) 3.
D) 4.
E) 1 or 4.

Question

Consider the following demand and supply curves in factor markets.  FIGURE 13- 4
-Refer to Figure 13- 4. The panel that best illustrates the supply of a factor to the economy as a whole is
A) 1. 
B) 2. 
C) 3. 
D) 4. 
E) 1 or 4.

Quizplus · Accepted Answer

Panel 3 illustrates the supply of a factor to the economy as a whole, as it shows the entire supply curve for the factor. Panels 1, 2, and 4 each show a portion of the supply curve and are therefore not as representative of the overall supply.

Consider the Following Demand and Supply Curves in Factor Markets