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Choose the point on the graph that shows excess supply of labor

Choose the point on the graph that shows excess supply of labor-example-1
User Pragma
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1 Answer

28 votes
28 votes

For this problem, we are given the curves of labor supply and demand. We need to determine the point at which there is an excess in the supply of labor.

The point at which there is an excess supply of labor is the point at which the labor supply is greater than the demand and the salary is at minimum wage. This means we need to choose the square that is to the right close to 45.

User EduBw
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3.2k points
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