Table 54 Table 5-4 Shows the Demand and Supply Schedules

Multiple Choice

Table 5.4 Table 5-4 shows the demand and supply schedules for labour market in the city of Pixley.
-Refer to Table 5.4.Suppose that the quantity of labour demanded decreases by 80 000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labour?

A) W = $8.50; Q = 550 000
B) W = $12.50; Q = 630 000
C) W = $9.50; Q = 570 000
D) W = $9.50; Q = 590 000