The table gives a labor demand schedule and a labor supply schedule
|Wage rate (dollars per hour)||Quantity of labor supplied||Quantity of labor Demanded|
|(number of workers)|
If an increase in the adult population changes the quantity of labor supplied by 200 workers at each wage rate, what is the new equilibrium wage rate?
The new equilibrium wage rate is $_____ an hour
Equilibrium wage is attained at a point where the demand for labour equals the supply of labour. It is called equilibrium because there is no tendency for the wage rate to change unless there is some external disturbance.
Answer and Explanation: 1
Initially, the labour demand equals the labour supply at a wage rate of $15.
But when the supply of workers increased due to increase in adult...
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fromChapter 8 / Lesson 4
In economics, labor is subject to the laws of supply and demand. Learn about the labor market in economics. Explore scarcity in labor, review why CEOs make more money than teachers, and examine the impact of market forces on the labor market.