Figure 3.3

-In Figure 3.3, the initial labor supply is S₁ and the labor demand is D₁. If the wage is $6, which of the following is correct?

Question

Figure 3.3 -In Figure 3.3, the initial labor supply is S₁ and the labor demand is D₁. If the wage is $6, which of the following is correct?

Quizplus · Accepted Answer

Given the information, without seeing Figure 3.3, we can deduce that if there's a mention of a specific shortage of workers, it implies that the actual wage is below the equilibrium wage, leading to more demand for labor than the supply at that wage level.

Figure 3.3 -In Figure 3.3, the Initial Labor Supply Is S1 and Supply

Figure 3.3 -In Figure 3.3, the Initial Labor Supply Is S₁ and Supply