In Market 1, the Demand for Labour Is W₁ =

Multiple Choice

In market 1, the demand for labour is w₁ = 100 - z₁, where w₁ is the wage rate and z₁ is the number of workers. Similarly, in market 2 the demand for labour is w₂ = 100 - z₂. There are 100 workers to be allocated to the two markets, and workers are concerned only with their expected wage. If the two labour markets are competitive, then in equilibrium workers are allocated to the two markets in which of the following ways?

A) 60 workers to market 1 and 40 to market 2
B) 70 workers to market 1 and 30 to market 2
C) 50 workers to market 1 and 50 to market 2
D) 40 workers to market 1 and 60 to market 2