If the labour market is perfectly competitive, labour demand function is given by ND = a + bW and labour supply function is given by N S = c + dW; W is the wage rate, and a, b, c, and d are constants. At market equilibrium, we can determine the market wage rate as: O (a + c)/(d + b). (a + c)/(d - b). (a - c)/(d + b). (a - c)/(d - b).
If the labour market is perfectly competitive, labour demand function is given by ND = a + bW and labour supply function is given by N S = c + dW; W is the wage rate, and a, b, c, and d are constants. At market equilibrium, we can determine the market wage rate as: O (a + c)/(d + b). (a + c)/(d - b). (a - c)/(d + b). (a - c)/(d - b).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If the labour market is perfectly competitive, labour demand function is given by ND
= a + bW and labour supply function is given by N S = c + dW; W is the wage rate,
and a, b, c, and d are constants. At market equilibrium, we can determine the market
wage rate as:
O (a + c)/(d + b).
(a + c)/(d - b).
(a - c)/(d + b).
(a - c)/(d - b).
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