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 starting position of a labour market. The government raises the number of statutory paid holidays that workers are entitled to, from 10 days a year to 15 days a year. How will this change the supply and demand curves shown in the diagram?

  • Aemployers’ demand curve: shifts to left; workers’ supply curve: shifts to right
  • Bemployers’ demand curve: shifts to left; workers’ supply curve: shifts to left
  • Cemployers’ demand curve: shifts to right; workers’ supply curve: shifts to right
  • Demployers’ demand curve: shifts to right; workers’ supply curve: shifts to left

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