Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

The diagram illustrates the original position in a labour market. The government passes a law that cuts the statutory working week from 39 hours to 36 hours. How will this change the supply and demand curves shown in the diagram?

  • Aemployers’ demand curve shifts to right; workers’ supply curve shifts to left
  • Bdemand shifts to right; supply shifts to right
  • Cdemand shifts to left; supply shifts to left
  • Ddemand shifts to left; supply shifts to right

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