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The Figures Given Below Show the Demand (D)and Supply (S)

Question 3

Multiple Choice

The figures given below show the demand (D) and supply (S) curves of labor in two different markets. Figure 15.3
- Refer to Figure 15.3.If the wage rates in market A and market B were set at $20,then:

A) both the markets would be in equilibrium.
B) there would be a shortage of workers in market A and a surplus of workers in market B.
C) there would be a shortage of workers in market B and a surplus of workers in market A.
D) there would be a surplus of workers in both markets.
E) there would be a shortage of workers in both markets.

Correct Answer: