The principal-agent problem, as applied to the labor market, would have the :
A. employer as the agent and the worker as the principal.
B. employer as the principal and the worker as the agent.
C. employer and worker as the principals, and the customer as the agent.
D. customer as the principal, and the employer and worker as the agents.

The answer is B.

Explanation:

An agency relationship is a relationship between the principal and the agent.

A principal employs the service of an agent who acts on behalf of the principal.

An agent must make sure that there is no conflict on interest.

So in labor market, employer is the principal while the worker or employee is the agent.

previous business sales - c.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.