Suppose All Workers in a Certain Labor Market Are of Either

Multiple Choice

Suppose all workers in a certain labor market are of either high quality or low quality.Potential employers value a high-quality worker at $15,000 per month and a low-quality worker at $7,500 per month.The monthly supply of high-quality workers is Q^s_H = 0.04(W - 1,500) and the supply of low-quality workers is Q^s_L = 0.08(W - 1,500) ,where W is the monthly wage.If workers' abilities are observable to employers,what are the equilibrium wages?

A) W_H = $15,000; W_L = $7,500
B) W_H = $7,500; W_L = $7,500
C) W_H = $12,500; W_L = $12,500
D) W_H = $5,250; W_L = $4,500