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Hourly wage , Quantity of labor supplied , Quantity of labor demanded
7.5 , 530,000 , 650,000
8.5 , 550,000, 630,000
9.5 , 570,000 , 610,000
10.5 , 590,000 , 590,000
11.5 , 610,000 , 570,000
12.5 , 630,000 , 550,000
The above shows the demand and supply schedules for the labour market in the city of XYZ.
Suppose that the quantity of labour demanded decreases by 80,000 at each wage level. What are the new market equilibrium hourly wage and the new equilibrium quantity of labour?
A) W=12.50; Q=630,000
B) W= 8.50; Q= 550,000
C) W= 9.5; Q = 590,000
D) W=9.5; Q=570,000
Please explain how to derive the correct answer.
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