Table 4-4
Table 4-4 shows the demand and supply schedules for the low-skilled labor market in the city of Westover.
-Refer to Table 4-4.Suppose that the quantity of labor supplied decreases by 40,000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

Question

Table 4-4
  Table 4-4 shows the demand and supply schedules for the low-skilled labor market in the city of Westover.
-Refer to Table 4-4.Suppose that the quantity of labor supplied decreases by 40,000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?

Quizplus · Accepted Answer

A decrease in the quantity of labor supplied by 40,000 at each wage level would lead to a higher equilibrium wage and a lower equilibrium quantity of labor, as the supply curve shifts to the left. Option C reflects this scenario with a higher wage and a lower quantity of labor compared to the original equilibrium.

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