Question

The table below describes the market for dishwashers.

Answer 1

Answer:

The equilibrium daily wage rate is $150.

Explanation:

The equilibrium price and equilibrium quantity take place where the supply and demand curves intersect each other. The equilibrium take place when the quantity demanded is same as the quantity supplied.

Consider the data provided.

Wage per            Quantity demanded           Quantity supplied

    day                          per day                                per day

    $10                           8,000                                      10

   $25                           5,000                                     500

   $50                           4,000                                    1,000

  $100                           3,500                                   2,000

  $150                            3,000                                  3,000

In this case, it is clear from the table that the quantity demanded is same as the quantity supplied when the wage per day is $150.

Also consider the graph attached.

The intersection point of the two graphs is at ($150, 3,000).

So, the equilibrium daily wage rate is $150.