Figure 18-3 -Refer to Figure 18-3.If the Relevant Labour Supply Curve Is

Multiple Choice

Figure 18-3

-Refer to Figure 18-3.If the relevant labour supply curve is S₂ and the current wage is W₁
,what do we know about the condition of this labour market

A) There is a surplus of labour.
B) The quantity of labour demanded exceeds the quantity of labour supplied.
C) An increase in the minimum wage could be employed to restore equilibrium in the market.
D) The demand has to shift downward to restore the equilibrium.