Figure 19-5
-Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S1, what are the equilibrium wage and quantity of labor?
A)$5 and 250
B)$6 and 200
C)$8 and 100
D)$8 and 400

Question

Figure 19-5 
-Refer to Figure 19-5. Given demand for labor, D1, and supply of labor, S1, what are the equilibrium wage and quantity of labor?
A)$5 and 250 
B)$6 and 200 
C)$8 and 100 
D)$8 and 400

Quizplus · Accepted Answer

The equilibrium wage is the wage at which the quantity of labor demanded equals the quantity of labor supplied. In this case, the equilibrium wage is $5 and the equilibrium quantity of labor is 250.

Figure 19-5 -Refer to Figure 19-5. Given Demand for Labor, D1, and Labor