Table 4-3

Table 4-3 shows the demand and supply schedules for labor market in the city of Pixley.
-Refer to Table 4-3.What is the equilibrium hourly wage (W*)and the equilibrium quantity of labor (Q*)?

Question

Table 4-3
  
Table 4-3 shows the demand and supply schedules for labor market in the city of Pixley.
-Refer to Table 4-3.What is the equilibrium hourly wage (W*)and the equilibrium quantity of labor (Q*)?

Quizplus · Accepted Answer

To find the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*), we need to see where the demand for labor equals the supply of labor. At a wage of $10.50 per hour, the quantity demanded is 590,000 and the quantity supplied is 590,000. This is the equilibrium point, so the answer is A) W* = $10.50; Q* = 590,000.

Table 4-3 Table 4-3 Shows the Demand and Supply Schedules for Labor