Question

The following graph gives the labor market for the fast-food industry of the imaginary city of Combopolis. What does the graph represent?

1) Demand for labor in the fast-food industry
2) Supply of labor in the fast-food industry
3) Wages in the fast-food industry
4) Number of fast-food restaurants in Combopolis

Answer 1

The graph represents the demand for labor in the fast-food industry.

Step-by-step explanation:

The graph represents the demand for labor in the fast-food industry of Combopolis. It shows the quantity of labor that employers are willing to hire at different wage rates. The demand curve for labor slopes downward, indicating that as wages increase, employers will want to hire fewer employees. Conversely, as wages decrease, employers are more likely to hire a greater number of workers.