Final answer:
The endogenous variables in the labor market model are the wage rate (w) and the quantity of labor. The equations are set equal to each other to solve for the equilibrium wage rate, which is 10, and the equilibrium quantity of labor, which is 50.
Step-by-step explanation:
In the labor market model, the endogenous variables are those determined within the model, which are typically the variables that the market is solving for. In the given equations, the endogenous variables would be the wage rate (w) and the quantity of labor (supply and demand). Since Supply equals Demand for market equilibrium, we set the supply equation equal to the demand equation and solve for w:
Supply = Demand
(2)(w) + 30 = 60 - w
3w = 30
w = 10
Then, we can find the equilibrium quantity of labor by substituting w = 10 into either the supply or demand equation:
Supply = (2)(10) + 30 = 50
Demand = 60 - 10 = 50
The equilibrium wage rate is 10, and the equilibrium quantity of labor is 50, assuming that the units are consistent (e.g., dollars for wages and number of workers for labor quantity).