Question 13
Demand for the product made by these workers rises, shifting labour demand from D₀ to D₁. What is the most likely result?
The equilibrium wage falls from W₁ to W₀ and employment falls from L₁ to L₀.
The supply of labour shifts right and the equilibrium wage falls.
The equilibrium wage rises from W₀ to W₁ and employment rises from L₀ to L₁.
Employment rises, but the equilibrium wage must remain at W₀.
2.7 The labour market Questions
34 exam-style questions on OCR GCSE Economics 2.7 The labour market, covering 2.7.1 Role and operation of the labour market, 2.7.2 Determination of wages, 2.7.3 Explain gross and net pay, and 2.7.4 Calculate gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.