Figure 10.3
-Refer to Figure 10.3.Panel D is appropriate when used to represent
A) the quantity of labour demanded by an input price taker.
B) the labour supply curve facing an input price taker.
C) the quantity of labour supplied by someone working a fixed number of hours.
D) the highly skilled labour market supply curve.

Question

Figure 10.3 
-Refer to Figure 10.3.Panel D is appropriate when used to represent
A) the quantity of labour demanded by an input price taker. 
B) the labour supply curve facing an input price taker. 
C) the quantity of labour supplied by someone working a fixed number of hours. 
D) the highly skilled labour market supply curve.

Quizplus · Accepted Answer

Panel D shows an upward-sloping labour supply curve, which is appropriate for representing the labour supply curve facing an input price taker. This curve represents the quantity of labour that an individual worker is willing and able to supply at various wage rates, assuming no market power or influence over the wage rate.

Figure 10.3 -Refer to Figure 10.3.Panel D Is Appropriate When Used to When