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What is the result of a high equilibrium wage?
an extra demand for workers
What is the result of high equilibrium wage?
an extra demand for workers
What happens to the equilibrium wage when the demand for workers is high and supply is low?
Wage goes down.
What happens when demand for workers is high and supply is low to the equilibrium wage?
Wage goes down.
What generally happens to the equilibrium wage demand for workers is high and supply is low?
Wage goes down.
What generally happens to the equilibrium wage when demand for workers is high and supply is low?
Wage goes down.
What generally happens to the equilibrium wage when demand for workers is low and supply is high?
Wage goes down.
What happens to the equilibrium wage and quantity of labor if output rises?
The equilibrium wage falls and the equilibrium quantity of labor rises
Why is the equilibrium wage higher for doctors than for convenience store clerks?
The equilibrium wage for doctors is higher than for convenience store clerks primarily due to the significant differences in education, training, and skill requirements. Doctors typically undergo extensive education and residency programs, which limits the supply of qualified candidates, while convenience store clerks require minimal training, resulting in a larger supply of potential workers. Additionally, the demand for healthcare services is generally higher and more inelastic, contributing to higher wages for doctors. In contrast, the labor market for convenience store clerks is more competitive, leading to lower equilibrium wages.
What is a simple definition of equilibrium wage?
In economics, the equilibrium wage is the wage rate that produces neither an access supply of workers nor an excess demand for workers and labor ...en.wikipedia.org/wiki/Equilibrium_wage
When the wage rate paid to labor is below equilibrium?
When the wage rate paid to labour is below equilibrium wage, then labour is undersupplied. As firms require more labour to maximise their profit, they will slowly raise their wage rate (because revenue from labour > costs) until the equilibrium level is achieved (since no more profit is achieveable at this level).
What is the calculation for equilibrium wage?
The equilibrium wage is determined by the intersection of the supply and demand curves in the labor market. It is calculated where the quantity of labor supplied equals the quantity of labor demanded. Mathematically, this can be expressed as setting the supply function ( S(w) ) equal to the demand function ( D(w) ), where ( w ) represents the wage. This equilibrium wage reflects the market-clearing level where there are no surpluses or shortages of labor.
