Table 4-7
Table 4-7 shows the demand and supply schedules for the labor market in the city of Pixley.
-Refer to Table 4-7. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?
A) W* = $10.50; Q* = 590,000
B) W* = $11.50; Q* = 570,000
C) W* = $9.50; Q* = 570,000
D) W* = $10.50; Q* = 1,180,000

Question

Table 4-7
  Table 4-7 shows the demand and supply schedules for the labor market in the city of Pixley.
-Refer to Table 4-7. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?
A) W* = $10.50; Q* = 590,000 
B) W* = $11.50; Q* = 570,000 
C) W* = $9.50; Q* = 570,000 
D) W* = $10.50; Q* = 1,180,000

Quizplus · Accepted Answer

The equilibrium wage and quantity occur where the supply and demand for labor intersect. Based on the options, W* = $10.50 and Q* = 590,000 is the correct equilibrium point.

Table 4-7 Table 4-7 Shows the Demand and Supply Schedules