If labor markets are competitive, wages in those markets are determined by
A) the interaction of supply and demand.
B) supply only.
C) demand only.
D) neither supply nor demand.

Question

Quizplus · Accepted Answer

In competitive labor markets, wages are determined by the interaction of supply and demand. Supply refers to the availability of workers willing to work at different wage levels, while demand refers to employers' need for workers at those wage levels.

If Labor Markets Are Competitive, Wages in Those Markets Are