Refer to the information provided in Figure 14.3 below to answer the questions that follow.
Figure 14.3
-Refer to Figure 14.3.If this firm pays the efficient wage of $11,

Question

Refer to the information provided in Figure 14.3 below to answer the questions that follow.
  Figure 14.3
-Refer to Figure 14.3.If this firm pays the efficient wage of $11,

Quizplus · Accepted Answer

At the efficient wage of $11, the quantity of labor supplied is 8,000 while the quantity of labor demanded is only 5,000. This creates an excess supply of labor of 3,000. To reach equilibrium, the wage rate would need to decrease to a level where the quantity of labor supplied equals the quantity of labor demanded.

Refer to the Information Provided in Figure 14