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 workers are entitled to from 10 days a year to 15 days a year. What effect will this have on 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

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI