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Refer to the Graphs Shown

Question 89

Multiple Choice

Refer to the graphs shown. Refer to the graphs shown. If product demand increases from D<sub>1</sub> to D<sub>2</sub>, causing the product price to increase, firm A (a supplier of this product) will: A) pay a higher wage rate and reduce employment from q2 to q1. B) pay a lower wage rate and increase employment from q<sub>3</sub> to q<sub>4</sub>. C) increase employment because its MRP curve will shift rightward. D) decrease employment because its MRP curve will shift leftward. If product demand increases from D1 to D2, causing the product price to increase, firm A (a supplier of this product) will:


A) pay a higher wage rate and reduce employment from q2 to q1.
B) pay a lower wage rate and increase employment from q3 to q4.
C) increase employment because its MRP curve will shift rightward.
D) decrease employment because its MRP curve will shift leftward.

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