The following graph illustrates a low wage labor market.
In an unregulated competitive market,the equilibrium wage rate would be __________ and the equilibrium employment level would be __________.

Question

The following graph illustrates a low wage labor market. 
In an unregulated competitive market,the equilibrium wage rate would be __________ and the equilibrium employment level would be __________.

Quizplus · Accepted Answer

In a low-wage labor market, the supply of workers is high and demand for workers is low, which leads to a lower equilibrium wage rate and employment level. Looking at the graph, the point where the supply and demand curves intersect is at a wage rate of $7.50 and an employment level of 375. Therefore, C is the correct choice.

The Following Graph Illustrates a Low Wage Labor Market