-In the figure above, the demand and supply of high-skilled workers has an H subscript and the demand and supply of low-skilled workers as an L subscript. The difference in wage rate between low-skilled and high-skilled labor is
A) $8.
B) $10.
C) $4.
D) $14.

Question

-In the figure above, the demand and supply of high-skilled workers has an H subscript and the demand and supply of low-skilled workers as an L subscript. The difference in wage rate between low-skilled and high-skilled labor is
A) $8. 
B) $10. 
C) $4. 
D) $14.

Quizplus · Accepted Answer

The difference in wage rate between low-skilled and high-skilled labor is calculated by subtracting the wage rate of low-skilled workers from that of high-skilled workers. If the wage rate for high-skilled workers is $20 and for low-skilled workers is $10, the difference is $10.

-In the Figure Above, the Demand and Supply of High-Skilled