Pennsylvania's largest grower of fresh-to-market tomatoes announced in March 2009 he will no longer produce the crop because he can't find enough workers to harvest it. Though his tomato pickers made an average of $16.59 per hour last year, he said the relatively high wage is not enough to attract local labor to work the fields. In the market for tomato workers, what is true?

Question

Quizplus · Accepted Answer

If the farmer cannot find enough workers to harvest the tomatoes even with an average wage of $16.59 per hour, it suggests that the equilibrium wage rate in the market for tomato workers is higher than $16.59. Therefore, $16.59 is below the equilibrium wage rate.

Pennsylvania's Largest Grower of Fresh-To-Market Tomatoes Announced in March 2009