The following figure shows wage rate versus quantity of labor.

-Refer to the figure above.If S₁ is the labor supply curve and D₁ is the labor demand curve at a balance between recession and boom,what point represents the quantity of labor and wage rate?

Question

The following figure shows wage rate versus quantity of labor.
 
-Refer to the figure above.If S₁ is the labor supply curve and D₁ is the labor demand curve at a balance between recession and boom,what point represents the quantity of labor and wage rate?

Quizplus · Accepted Answer

Point c represents the quantity of labor and wage rate at the equilibrium between S₁ and D₁, which represents the balance between labor supply and demand during a period of recession or boom. Points a and b are not at the equilibrium and point e is not on either curve.

The Following Figure Shows Wage Rate Versus Quantity of Labor