Consider the labor market below. In the absence of any government intervention, the equilibrium wage is______ per hour, and the equilibrium employment level is______ workers per hour.

Question

Consider the labor market below.  In the absence of any government intervention, the equilibrium wage is______ per hour, and the equilibrium employment level is______ workers per hour.

Quizplus · Accepted Answer

In the absence of government intervention, the equilibrium wage and employment level are determined by the intersection of the demand and supply curves. Based on the diagram provided, we can see that the equilibrium wage is around $8 per hour, and the equilibrium employment level is around 400 workers per hour. Therefore, the best choice is answer choice C.

Consider the Labor Market Below