Figure 18-4 -Refer to Figure 18-4.If the Relevant Labour Demand Curve Is

Multiple Choice

Figure 18-4

-Refer to Figure 18-4.If the relevant labour demand curve is D₂ and the current wage is W₁
,which statement explains the condition of the labour market

A) There is a surplus of labour.
B) There is a shortage of labour.
C) The quantity of labour supplied exceeds the quantity of labour demanded.
D) Workers are failing to take into account the work-leisure trade-off in deciding what quantity of labour to supply at alternative wages.