Which of the following statements is true of the market for labor?

Question

Quizplus · Accepted Answer

The equilibrium wage rate and quantity of labor are determined at the point where the labor demand and labor supply curves intersect. At this point, the quantity of labor demanded equals the quantity of labor supplied, and there is neither a shortage nor a surplus of labor. Choice A is incorrect because the elasticity of the supply and demand curves for labor may vary depending on factors such as job availability or skill level. Choice B is incorrect because a shortage implies that the quantity demanded exceeds the quantity supplied, but at the point of intersection, the quantity demanded equals the quantity supplied. Choice C is incorrect because a surplus implies that the quantity supplied exceeds the quantity demanded, which is not the case at the point of intersection.

Which of the Following Statements Is True of the Market