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The Following Figures Show the Demand and Supply of Labor

Question 41

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The following figures show the demand and supply of labor in two different types of labor market. Figure 15.5 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 -In Figure 15.5,if a minimum wage of $10 is set by the government,then in market B: A) wage increases but labor employment decreases. B) wage increases but labor employment remains constant. C) wage decreases from $12 to $10. D) both wage and employment increase. E) both wage and employment decrease. In the figures,
D: Demand curve for labor
S: Supply curve of labor
MRP: Marginal revenue product
MFC: Marginal factor cost
-In Figure 15.5,if a minimum wage of $10 is set by the government,then in market B:


A) wage increases but labor employment decreases.
B) wage increases but labor employment remains constant.
C) wage decreases from $12 to $10.
D) both wage and employment increase.
E) both wage and employment decrease.

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