QUESTION 4 LSI m a market A month later the The following f

QUESTION 4 LSI , m a market A month later, the The following figure shows the labor demand curve, LD|. and labor A) $20 and 40 units of labor B) $40 and 40 units of labor C) $50 and 40 units of labor D) $60 and 20 units of labor 2) Refer to the figure above What is the equilabrium wage rate and employment level after the labor demand cuave shuts to LD27 A) $10 and 60 units of labor B) $20 and 40 units of labor C) $40 and 30 units of labor D) $50 and 50 units of labor 0

Solution

Equilibrium is determined at the point where demand for Labour and supply of labour are equal.

1. Wage rate=$50 quantity of labour=40

Answer-C

2.Wage rate-$40, quantity of labour=30

Answer-C