The figure given below shows the demand curves (D₁ and D₂) and supply curves (S₁ and S₂) of labor in the labor market.Figure: 16.2

-According to Figure 16.2, assume that the market is at an initial equilibrium in which the labor supply is S₁ and the labor demand is D₁. The labor supply curve shifts from S₁ to S₂ but the wage remains unchanged at its previous equilibrium level. Which of the following is true?

Question

The figure given below shows the demand curves (D₁ and D₂) and supply curves (S₁ and S₂) of labor in the labor market.Figure: 16.2

The figure given below shows the demand curves (D<sub>1</sub> and D<sub>2</sub>) and supply curves (S<sub>1</sub> and S<sub>2</sub>) of labor in the labor market.Figure: 16.2 -According to Figure 16.2, assume that the market is at an initial equilibrium in which the labor supply is S<sub>1</sub> and the labor demand is D<sub>1</sub>. The labor supply curve shifts from S<sub>1</sub> to S<sub>2</sub> but the wage remains unchanged at its previous equilibrium level. Which of the following is true? A) The economy is still in equilibrium. B) There is a shortage of 20 workers. C) There is a shortage of 30 workers. D) There is a surplus of 30 workers. E) There is a surplus of 20 workers.

-According to Figure 16.2, assume that the market is at an initial equilibrium in which the labor supply is S₁ and the labor demand is D₁. The labor supply curve shifts from S₁ to S₂ but the wage remains unchanged at its previous equilibrium level. Which of the following is true?

Quizplus · Accepted Answer

The Answer is E

The Figure Given Below Shows the Demand Curves (D1 and D2)

The Figure Given Below Shows the Demand Curves (D₁ and D₂)