Multiple Choice
Use the figure below to answer the following questions. Figure 18.3.5
-Refer to Figure 18.3.5.This figure shows the labour supply curves and the value of marginal product curves for high-skilled and low-skilled workers.If there is an increase in the supply of high-skilled workers and the supply of high-skilled workers is now equal to the supply of low-skilled workers,then
A) wages paid to high-skilled workers would fall to $12 an hour.
B) wages paid to high-skilled workers would fall to $15 an hour.
C) wages paid to high-skilled workers would fall to $18 an hour.
D) there would be no change in the wages of high-skilled workers,because high-skilled workers always earn more than low-skilled workers.
E) there would be no change in the wages of high-skilled workers,because their value of marginal product is unchanged.
Correct Answer:

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Correct Answer:
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