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Suppose the Market for Labor Is Perfectly Competitive and the Demand

Question 29

Multiple Choice

Suppose the market for labor is perfectly competitive and the demand for labor is L=100−10wL = 100 - 10 w and market supply is L=−20+10wL = - 20 + 10 w .The equilibrium wage will be


A) 5
B) 6
C) 7
D) 8

Correct Answer:

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