The Figure Given Below Represents Equilibrium in the Labor Market

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor.Figure 14.6
In the figure,
D = MRP implies demand for labor = Marginal Revenue Product
MFC represents Marginal Factor Cost curve
S represents the supply curve of labor

-The more inelastic the supply of a particular resource:

A) the higher are its transfer earnings.
B) the higher is its economic rent.
C) the higher are its total earnings.
D) the higher is the elasticity of demand for the resource.
E) the lower is the elasticity of demand for the resource.

Correct Answer:

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