Economics (AS & A Level) · Oct / Nov 2024 · Paper 33 · Question 12
9708Labour market forces and government intervention
The diagram shows the supply of and the demand for workers in the car manufacturing industry. A trade union successfully negotiates a wage increase from W1 to W2. [diagram: wage rate vs quantity of labour, with demand curve D downward sloping, supply curve S upward sloping, wage levels W1 and W2, and labour quantities L1, L2, L3] What is the likely impact on the level of employment?
- Afall from L1 to L2
- Bfall from L3 to L2
- Crise from L1 to L3
- Drise from L2 to L3
As printed in the paper
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Correct answer: A. fall from L1 to L2
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