Table 18.3.1 -Refer to Table 18.3.1. Table 18.3.1 Gives Information About the About

Multiple Choice

Table 18.3.1
-Refer to Table 18.3.1. Table 18.3.1 gives information about the labour market in Lantis, a community in which the labour market is perfectly competitive. If the price of the good that Lantis produces increases and the value of marginal product of labour changes by $10 an hour, the equilibrium wage rate ________ an hour and the quantity of labour employed ________.

A) rises to $17.50; increases to 450 hours
B) rises to $10; increases to 600
C) rises to $20; increases to 500 hours
D) remains at $15; decreases to 300 hours
E) rises to $20; decreases to 300 hours