​Figure 52

Multiple Choice

​Figure 5.2. The figure shows the supply and demand curves of a firm.
-What do you mean by the term 'equilibrium wage'?​

A) ​It is the wage that is determined when potential employers and potential employees are free to transact as they wish.
B) ​It is a wage determined by the government with an intention to narrow the gap between the higher and the lower income groups.
C) ​It is a wage at which the workers refuse to offer labor.
D) ​It is a minimum possible rate that an employer must pay in order to hire a labor.
E) ​It is a wage at which there is an excess supply of workers.