What Are the Competitive Equilibrium Wage and Employment Level in Figure

question 35

Multiple Choice

What are the competitive equilibrium wage and employment level in Figure 31.1?

• A)$8; 10 workers.
• B)$5; 16 workers.
• C)$4; 13 workers.
• D)$11; 32 workers.

---

Definitions:

Complementary Goods

Products or services that are typically consumed together, where a decrease in the price of one leads to an increase in demand for the other.

Producer Surplus

The difference between the amount a producer is paid for a good versus the minimum amount they would be willing to accept.

Equilibrium

A state in which market supply and demand balance each other, leading to price stability for a particular good or service.

Efficiency

The optimum allocation of resources to achieve the best possible output or outcome with minimal waste or inefficiency.