The demand for labour can be expressed as Q = 10,000 - w and the supply of labour is Q = 5,000 + w where Q is total person- hours of work during the week and w is the weekly salary. What is the equilibrium weekly wage rate?
A)2,500
B)1,500
C)3,000
D)2,000

Question

Quizplus · Accepted Answer

The equilibrium weekly wage rate is the point where the demand for labour equals the supply of labour. In this case, the equilibrium weekly wage rate is 2,500.

The Demand for Labour Can Be Expressed as Q =