Question

Select the correct answer.

How many workers would producers be willing to employ at a wage of $40 per hour?
A line graph between number of workers and hourly wage in dollars has 3 intersecting lines, supply, equilibrium price and demand. Equilibrium price is at 17 dollars, price floor at 40 dollars, and price ceiling at 18 dollars, extended to the x-axis.
A.
8
B.
15
C.
26
D.
52

Answer 1

At a wage of $40 per hour, there would be 8 workers willing to work. The correct answer is A.8.

In the labor market, labor demand represents the number of workers that producers are willing to hire at certain wage levels (prices). As a result of the information in the graph, producers require 8 workers at a wage level of 40.

Labor supply equals 52 at the same price level. This suggests that 52 people are willing to contribute their labor talents in exchange for a salary of $40.

As a result, there is an excess of demand in this market, with more people eager to work than job slots given by producers, resulting in an unemployment crisis.