Figure 18-3 -Refer to Figure 18-3.Assume That W₁

Multiple Choice

Figure 18-3

-Refer to Figure 18-3.Assume that W₁
= $20 and W₂
= $18 and that the market stays in equilibrium.What would happen to the marginal product of labour if the labour supply curve shifts from S₁ to S₂

A) The shift decreases the value of the marginal product of labour by more than $2.
B) The shift decreases the value of the marginal product of labour by $2.
C) The shift increases the value of marginal product of labour by more than $2.
D) The shift increases the value of the marginal product of labour by $2.