In equilibrium, the quantity of labor demanded is ________ the quantity of labor supplied.

Question

Quizplus · Accepted Answer

In equilibrium, the quantity of labor demanded is equal to the quantity of labor supplied. This is because in a competitive labor market, employers will offer wages at the going rate for a given skill level, and workers will supply labor according to their skill level and willingness to work at that wage. If the demand for labor exceeds the supply, then employers will offer higher wages to attract workers, which will lead to an increase in the quantity of labor supplied until it equals the quantity of labor demanded. Conversely, if the supply of labor exceeds the demand, then employers will be able to pay lower wages and not all workers will find employment until the quantity of labor supplied equals the quantity of labor demanded.

In Equilibrium, the Quantity of Labor Demanded Is ________ the Quantity