​Figure 53

Multiple Choice

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-Refer to figure 5.3. Which of the following is a possible outcome of a fall in the wage rate from $6 to $4?​

A) ​There will be an increase in both, the supply of and the demand for labor.
B) ​There will be a fall in the supply of labor and an increase in the demand for labor.
C) ​There will be a fall in the demand for labor and an increase in the supply of labor.
D) ​There will be a shift in the equilibrium point.
E) ​There will be a fall in both the supply of and the demand for labor.