Refer to Figure 31.2.What is the competitive level of wages and employment?
A) $11 per hour and 50 workers.
B) $9 per hour and 40 workers.
C) $7 per hour and 50 workers.
D) $6 per hour and 40 workers.

Question

Refer to Figure 31.2.What is the competitive level of wages and employment?
A) $11 per hour and 50 workers. 
B) $9 per hour and 40 workers. 
C) $7 per hour and 50 workers. 
D) $6 per hour and 40 workers.

Quizplus · Accepted Answer

Based on the graph, the intersection of the supply and demand curves occurs at a wage rate of $7 per hour and an employment level of 50 workers. This indicates that the competitive level of wages and employment in this market is $7 per hour and 50 workers. Therefore, answer choice C is the correct choice.