In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Firms are consumers and households are producers in the _____ market.
A)stock
B)bond
C)labor
D)product
E)underground

Question

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
  In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Firms are consumers and households are producers in the _____ market.
A)stock 
B)bond 
C)labor 
D)product 
E)underground

Quizplus · Accepted Answer

In the labor market, households are considered the suppliers or producers of labor, while firms are the consumers of labor, hiring employees to work for them.

In the Following Figure, the First Panel Shows a Market