-In the figure above,if the wage rate is $6 per hour,then the
A) firms' surplus is the area d + e + f.
B) workers' surplus is the area a + b + c.
C) deadweight loss equals zero.
D) Only answers A and C are correct.
E) Answers A, B, and C are correct.

Question

-In the figure above,if the wage rate is $6 per hour,then the
A) firms' surplus is the area d + e + f. 
B) workers' surplus is the area a + b + c. 
C) deadweight loss equals zero. 
D) Only answers A and C are correct. 
E) Answers A, B, and C are correct.

Quizplus · Accepted Answer

When the wage rate is set at $6 per hour, the market is in equilibrium, meaning that the quantity of labor supplied equals the quantity of labor demanded. In this scenario, firms' surplus is represented by the area above the wage rate and below the demand curve (d + e + f), and workers' surplus is represented by the area below the wage rate and above the supply curve (a + b + c). Since the market is in equilibrium, there is no deadweight loss, indicating efficient allocation of resources. Therefore, all statements A, B, and C are correct.

-In the Figure Above,if the Wage Rate Is $6 Per