Question

How many workers would producers be willing to employ at a wage of $40 per hour?

Answer 1

The correct answer is 8.

In the labor market, the demand of labor represents the quantity of workers that producers are willing to hire at different wage levels (prices). Therefore, according to the information in the graph, at a wage level of 40 the producers demand 8 workers.

At the same price level, the supply of labor equals 52. This means that there are 52 workers that are willing to offer their labor skills in exchange for a salary of 40$.

Therefore, in this market there is a excess of demand, there are more people willing to work than the job positions offered by producers, so this labor market situation represents an unemployment situation.