Question

VIEW Help Grammarly Tell me wha 3. Which of the following will tend to increase the quantity of labor hired: a. a rise in demand for labor, b. a fall in the demand for labor; c. a rise in the supply of labor; d. a fall in the supply of labor? Sketch a demand and supply diagram to illustrate your answer. 4. The demand and supply of financial capital for business investment is shown in the following table. "Price" in this market is measured as the rate of retum that is paid by recipients of financial capital and received by investors of financial capital; the quantity of capital is measured in billions of dollars. What is the equilibrium? How can you tell? Now suppose that because of a series of important new technological inventions, U.S. businesses perceive a larger number of good investment opportunities, so that their demand for financial capital rises by $16 billion at each interest rate. What is the new equilibrium? Sketch the original demand and supply situation and the new situation on a graph. Do the equilibrium price and quantity change in the direction you would expect given an increase in demand? Original quantity demanded Original quantity supplied 50 Rate of return 8% 9% 10% 11% 12% 55

Answer 1

Answer 3. Increase in quantity of labor hired is due to-

a. a rise in demand for labor

d. a rise in supply of labor.

Reason-

a. a rise in demand for labor= rise in quantity of labor

b. a fall in demand for labor= fall in quantity of labor

c. a rise in supply of labor= rise in quantity of labor

d. a fall in supply of labor- fall in quantity of labor

Note-According to HOMEWORKLIB RULES first question can be answered