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 an unregulated competitive market, the equilibrium wage rate would be where the supply of labor (represented by the upward-sloping curve) intersects the demand for labor (represented by the downward-sloping curve). In this graph, that point is at a wage rate of $7.50 and an employment level of 375. Thus, the correct answer is choice C).

The Following Graph Illustrates a Low Wage Labor Market