JAMB - Economics (2024 - No. 38)

From the diagram below, the equilibrium wage rate is

L3
L2
W2
W1

Explanation

The equilibrium wage rate is achieved when the demand for labour equals the supply of labour in a particular labour market. At this point, there is no excess demand or excess supply of labour, and the market is in balance.
From the diagram above, the equilibrium wage rate is W2.

Comments (0)

Advertisement