In a competitive labour market,the equilibrium wage rate is determined by

Question

Quizplus · Accepted Answer

In a competitive labour market, the equilibrium wage rate is determined by the intersection of labour demand and labour supply. This is the point where the quantity of labour demanded by employers equals the quantity of labour supplied by workers, resulting in a market-clearing wage rate. Custom and tradition, employers, employees, and government regulation can all have an impact on the labour market, but they do not determine the equilibrium wage rate.

In a Competitive Labour Market,the Equilibrium Wage Rate Is Determined