Use the figure below to answer the following questions.

Figure 18.3.2
-Refer to Figure 18.3.2.If the labour market illustrated in this figure becomes competitive,the equilibrium wage rate is ________ and the quantity of labour hired is ________.

Question

Use the figure below to answer the following questions.
  
Figure 18.3.2
-Refer to Figure 18.3.2.If the labour market illustrated in this figure becomes competitive,the equilibrium wage rate is ________ and the quantity of labour hired is ________.

Quizplus · Accepted Answer

In a competitive labour market, the equilibrium wage rate is where the demand and supply of labour intersect. In this figure, that point is where the demand curve and supply curve intersect at a wage rate of $7 per hour and the quantity of labour hired is 600 hours. Therefore, the answer is C, $7 per hour and 600 hours.

Use the Figure Below to Answer the Following Questions