Exhibit 11.2

-Refer to Exhibit 11.2,which shows the labor market.The vertical axis measures wage in dollars,and the horizontal axis measures labor in hours.The total earnings of labor in equilibrium equal _____

Question

Exhibit 11.2
 
-Refer to Exhibit 11.2,which shows the labor market.The vertical axis measures wage in dollars,and the horizontal axis measures labor in hours.The total earnings of labor in equilibrium equal _____

Quizplus · Accepted Answer

In equilibrium, the wage rate is where the labor supply and labor demand curves intersect. In this case, they intersect at $10 per hour and 16 hours of labor. Therefore, the total earnings of labor in equilibrium is $160 ($10 per hour x 16 hours of labor).

Exhibit 11.2 -Refer to Exhibit 11.2,which Shows the Labor Market.The Vertical Axis