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 $$\(W_{1}\)$$ to $$\(W_{2}\)$$. What is the likely impact on the level of employment?

A.
fall from \(L_{1}\) to \(L_{2}\)
B.
fall from \(L_{3}\) to \(L_{2}\)
C.
rise from \(L_{1}\) to \(L_{3}\)
D.
rise from \(L_{2}\) to \(L_{3}\)
Economics
IGCSE&ALevel
CAIE
Exam No:9708_w24_qp_33 Year:2024 Question No:12

Answer:

A

Knowledge points:

8.3.1 demand for labour as a derived demand
8.3.2 factors affecting demand for labour in a firm or an occupation

Solution:

Download APP for more features
1. Tons of answers.
2. Smarter Al tools enhance your learning journey.
IOS
Download
Android
Download
Google Play
Download