972412018 00.0 Print Calculator Periodic Table Map as Question 15 of 22 Sapling
ID: 1140147 • Letter: 9
Question
972412018 00.0 Print Calculator Periodic Table Map as Question 15 of 22 Sapling Learning The graph to the right represents the labor market 10 What is the equilibrium hourty wage? Number Price (S/hour) What is the equilibrium quantity? Number | Hours Identify all of the following factors that would cause the equilibrium wage to increase 3 4 5 6 78 9 10 11 12 13 14 15 16 17 18 19 20 Quantity (hours) Increase in labor demanded Decrease in labor demanded Increase in labor supplied Decrease in labor supplied Previous Check Answer Next HintExplanation / Answer
The equilibrium is reached at a point where all the available labor is employed in the factor market. That is if the labor demand equals the labor supply in the market, we say that the market is in equilibrium. The intersection of labor demand and supply curve denotes the equilibrium of labor market.
In the above figure the equilibrium quantity of labor is 12hours and the hourly wage rate is $5.
Increase in labor demanded will lead to increase in wages and equilibrium quantity.
Decrease in labor demanded will reduce the hourly equilibrium wage rate
Increase in labor supplied will reduce the hourly wage rate and increase the equilibrium quantity
Decrease in labor supplied will increase the wage rate and decrease the quantity
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