Table 5.4 Table 5-4 shows the demand and supply schedules for labour market in the city of Pixley.
-Refer to Table 5.4.Suppose that the quantity of labour supplied decreases by 80 000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labour?

Question

Table 5.4  Table 5-4 shows the demand and supply schedules for labour market in the city of Pixley.
-Refer to Table 5.4.Suppose that the quantity of labour supplied decreases by 80 000 at each wage level.What are the new free market equilibrium hourly wage and the new equilibrium quantity of labour?

Quizplus · Accepted Answer

The decrease in the quantity of labor supplied by 80,000 at each wage level shifts the supply curve leftward. The new equilibrium is found where the new supply curve intersects the demand curve, which is at W = $12.50 and Q = 550,000.

Table 54 Table 5-4 Shows the Demand and Supply Schedules