Table 4-8
Table 4-8 shows the demand and supply schedules for the low-skilled labor market in the city of Westover.
-Refer to Table 4-8. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?
A) W* = $9.00; Q* = 370,000
B) W* = $8.50; Q* = 380,000
C) W* = $8.50; Q* = 360,000
D) W* = $9.00; Q* = 740,000

Question

Table 4-8
  Table 4-8 shows the demand and supply schedules for the low-skilled labor market in the city of Westover.
-Refer to Table 4-8. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?
A) W* = $9.00; Q* = 370,000 
B) W* = $8.50; Q* = 380,000 
C) W* = $8.50; Q* = 360,000 
D) W* = $9.00; Q* = 740,000

Quizplus · Accepted Answer

The equilibrium hourly wage (W*) is $9.00 and the equilibrium quantity of labor (Q*) is 370,000. This is the point where the supply and demand curves intersect.

Table 4-8 Table 4-8 Shows the Demand and Supply Schedules