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Suppose that the quantity of labor demanded decreases by​ 80,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of​ labor?

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Answer:

D) wage = $8.50 and quantity = 550,000

Step-by-step explanation:

hourly wage labor supplied labor demanded -80,000

$7.50 530,000 650,000 570,000

$8.50 550,000 630,000 550,000

$9.50 570,000 610,000 530,000

$10.50 590,000 590,000 510,000

$11.50 610,000 570,000 490,000

$12.50 630,000 550,000 470,000

The equilibrium quantity is the point where the labor supplied and the labor demanded intersect, and in this case that point is located at 550,000 units of labor at a price (wage) of $8.50 per labor hour.

Suppose that the quantity of labor demanded decreases by​ 80,000 at each wage level-example-1
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