The labor supply curve is given by the equation L_S = 3W + 20 and the labor demand curve is given by the equation L_D = 80 - 2W.The equilibrium wage in this labor market is A) $10. B) $12. C) $36. D) $56. E) $80.

Question

Quizplus · Accepted Answer

To find the equilibrium wage, we need to set the quantity of labor supplied equal to the quantity of labor demanded. Quantity of labor supplied: L_S = F1F1F1S1F1F1F10 3W + F1F1F1S1F1F1F10 20 Quantity of labor demanded: L_D = F1F1F1S1F1F1F10 2W + F1F1F1S1F1F1F10 80 Setting these two equations equal to each other: F1F1F1S1F1F1F10 3W + F1F1F1S1F1F1F10 20 = F1F1F1S1F1F1F10 2W + F1F1F1S1F1F1F10 80 Simplifying: 5W = 60 W = $12 Therefore, the equilibrium wage in this labor market is $12.

The Labor Supply Curve Is Given by the Equation LS

The Labor Supply Curve Is Given by the Equation L_S