In the graph of supply and demand in the market for labor:
A)individuals make up the demand curve.
B)the equilibrium price of labor is generally denoted as L*.
C)firms provide the demand.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

In the graph of supply and demand in the market for labor, firms provide the demand for labor, while individuals comprise the supply curve. The equilibrium price of labor is represented by the intersection of the supply and demand curves and is generally denoted as W* (not L* as stated in choice B). Choice A is incorrect as individuals make up the supply curve, not the demand curve.

In the Graph of Supply and Demand in the Market