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The Table Above Gives the Labor Market for a Small

Question 2

Multiple Choice

 Real wage rate  (2005 dollars  per hour)   Quantity of labor demanded  (millions of hours  per month)   Quantity of labor supplied  (millions of hours  per month)  7.1550257.6570328.0060608.5045709.002085\begin{array} { c c c } \hline \begin{array} { c } \text { Real wage rate } \\\text { (2005 dollars } \\\text { per hour) }\end{array} & \begin{array} { c } \text { Quantity of labor demanded }\\\text { (millions of hours } \\\text { per month) }\end{array} & \begin{array} { c } \text { Quantity of labor supplied } \\\text { (millions of hours } \\\text { per month) }\end{array} \\\hline 7.15 & 50 & 25 \\7.65 & 70 & 32 \\8.00 & 60 & 60 \\8.50 & 45 & 70 \\9.00 & 20 & 85 \\\hline\end{array}
The table above gives the labor market for a small foreign economy.
- Equilibrium in the labor market occurs at a real wage rate of


A) $7.65 per hour.
B) $9.00 per hour.
C) $7.15 per hour.
D) $8.00 per hour.
E) $8.50 per hour.

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