At the equilibrium wage,the quantity demanded of labor equals the quantity supplied.

Question

Quizplus · Accepted Answer

This is the definition of the equilibrium wage in a labor market. When the quantity demanded of labor equals the quantity supplied, it means that the market has reached a balance where both employers and employees are satisfied with the prevailing wage rate. At any other wage level, there will be a shortage or surplus of labor, which would lead to adjustments in wages until the equilibrium is restored.

At the Equilibrium Wage,the Quantity Demanded of Labor Equals the Quantity