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 labor demand equal to the labor supply and solve for W: L_S = L_D 3W + 20 = 80 - 2W 5W = 60 W = 12 Therefore, the equilibrium wage is $12, which is option B.

The Labor Supply Curve Is Given by the Equation LS

The Labor Supply Curve Is Given by the Equation L_S