Figure 9.3 Figure 9.3 represents the Mexican labor market. Assume that labor and capital are the only factors of production. Also assume the initial supply schedule of labor is denoted by S0 and consists entirely of native Mexican workers. The demand schedule of labor is denoted by DMexico.

-Consider Figure 9.3.At labor market equilibrium with supply S₀, _____ workers are hired at a wage rate of ____ pesos per hour, while total labor income equals ____ pesos.

Question

Figure 9.3 Figure 9.3 represents the Mexican labor market. Assume that labor and capital are the only factors of production. Also assume the initial supply schedule of labor is denoted by S0 and consists entirely of native Mexican workers. The demand schedule of labor is denoted by DMexico.

-Consider Figure 9.3.At labor market equilibrium with supply S₀, _____ workers are hired at a wage rate of ____ pesos per hour, while total labor income equals ____ pesos.

Quizplus · Accepted Answer

At labor market equilibrium, the number of workers hired and the wage rate are determined by the intersection of the supply and demand curves. The total labor income is calculated by multiplying the number of workers by the wage rate per hour. Choice A correctly matches these conditions with 6 workers hired at a wage rate of 7 pesos per hour, resulting in a total labor income of 42 pesos (6 workers * 7 pesos per hour).

Figure 93 Figure 9