Use the following to answer questions:
-(Figure: The Labor Market) Use Figure: The Labor Market. The size of the labor force at the equilibrium wage rate is:
A) 80,000.
B) 110,000.
C) 100,000.
D) 200,000.

Question

Use the following to answer questions: 
-(Figure: The Labor Market) Use Figure: The Labor Market. The size of the labor force at the equilibrium wage rate is:
A) 80,000. 
B) 110,000. 
C) 100,000. 
D) 200,000.

Quizplus · Accepted Answer

At the equilibrium wage rate, the quantity of labor demanded equals the quantity of labor supplied, which is 100,000. This is where the demand curve and the supply curve intersect on the graph. Therefore, the size of the labor force at the equilibrium wage rate is 100,000.

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