-The table above gives information about the labour market in Lantis, a community in which the labour market is perfectly competitive. If the demand for labour decreases by 200 hours per day, the equilibrium wage rate falls to _______ an hour and the quantity of labour employed _______ hours per day.
A) $20; increases to 400
B) $5; remains at 200
C) $10; decreases to 300
D) $10; remains at 400

Question

-The table above gives information about the labour market in Lantis, a community in which the labour market is perfectly competitive. If the demand for labour decreases by 200 hours per day, the equilibrium wage rate falls to _______ an hour and the quantity of labour employed _______ hours per day.
A) $20; increases to 400 
B) $5; remains at 200 
C) $10; decreases to 300 
D) $10; remains at 400

Quizplus · Accepted Answer

In a perfectly competitive labour market, a decrease in demand for labour would lead to a decrease in both the equilibrium wage rate and the quantity of labour employed. Option C correctly reflects this outcome.

-The Table Above Gives Information About the Labour Market in Lantis