Final answer:
The quantity of labor demanded is the number of labor hours demanded during a given period. The quantity of labor supplied is the number of labor hours supplied during a given period. The wage rate adjusts to bring the labor market to equilibrium.
Step-by-step explanation:
The quantity of labor demanded is the number of labor hours demanded during a given period. The quantity of labor supplied is the number of labor hours supplied during a given period. The wage rate adjusts to bring the labor market to equilibrium.
The quantity of labor demanded represents the number of labor hours employers are willing to hire within a specific timeframe, while the quantity of labor supplied refers to the number of labor hours individuals are willing to work during the same period. Equilibrium in the labor market occurs when the wage rate adjusts, balancing the demand and supply of labor. As wages fluctuate, reaching a point where the quantity of labor demanded equals the quantity supplied, the market achieves equilibrium, ensuring stability in employment levels and wage rates within that period.