The above figure shows the market for labor. The employer is a monopsony. The firm will not hire 800 hours of labor because at that point

Which of the following changes will be observed in the labor market of a country that follows strict population control measures?

a. The labor supply curve will shift to the right. b. The labor demand curve will shift to the right. c. The labor supply curve will shift to the left. d. The labor demand curve will become flatter.

Consider the labor market for an industry that is initially in equilibrium. Which of the following changes can bring about a labor shortage in this industry?

a. A decrease in wage rate in another industry that uses similar labor resources b. A decrease in wage rate on account of a government policy c. An increase in the demand for the good produced by firms in this industry d. A decrease in the productivity of existing workers under the influence of unions