Economics · May / June 2024 · Paper 11 · Question 11
2281Workers
The diagram shows the demand and supply curve of labour for a firm. The initial wage rate is given by W0 and the equilibrium quantity of labour employed is L0. A trade union that represents all of the workers negotiates a rise in wage rate to W1. What is the amount of unemployment that results from this wage rise?
- AOL1
- BL0L2
- CL1L0
- DL1L2
As printed in the paper
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Correct answer: D. L1L2
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