Question

A union has negotiated a contract that states the following: work up to 40 hours per week will be paid at a base rate of $10 per hour. All work in excess of 40 hours, but less than 48 hours will be paid at a rate equal to 1½ times the base rate. Any work in excess of 48 hours will be paid at double time. This pay scale agrees with:________a. the law of supply. b. the law of demand. c. the law of supply and demand. d. ceteris paribus. e. can't tell with the information provided.

Answer 1

Answer:

a. the law of supply.

Explanation:

This  pay scale agrees with the law of supply, which states that the higher the price, the higher the supply. We will observe that the higher the pay scale the higher the number of hours worked per week.

Answer 2

Answer:

A

Explanation:

The law of supply

The law of supply is basic and fundanental microeconomic law which, butresses the fact that, other factors being equal and constant, any increase in the price of a good or service increases automatically makes the quantity of goods or services that suppliers offer will increase, and it is the same vice versa. The law of supply says that as the price of an item increases, suppliers will attempt to maximize their profits by increasing the quantity offered for sale.