In the Following Figure, the First Panel Shows a Market

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S₁: Supply curve of automobiles prior to regulation
S₂: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-The demand curve for labor indicates that:

A) as the real wage rate increases, employers will hire more workers.
B) as the nominal wage rate increases, employers will hire more workers.
C) as the nominal wage rate decreases, the real wage rate increases.
D) as the real wage rate increases, employers will hire fewer workers.
E) as the real wage rate decreases the nominal wage rate increases.

Correct Answer:

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