What happens to equilibrium wage and quantity of labor if output price rises?

What happens to equilibrium wage and quantity of labor if output price rises?

What happens to the equilibrium wage and quantity of labor if output price rises? The equilibrium wage rises and the equilibrium quantity of labor falls.

What is likely to happen to the equilibrium wage and quantity of labor?

What is likely to happen to the equilibrium wage and quantity of labor? The equilibrium wage falls and the equilibrium quantity of labor rises.

How will an increase in labor productivity affect equilibrium?

How will an increase in labor productivity affect equilibrium in the labor market? The demand for labor will increase and the equilibrium wage and quantity of labor will increase.

What generally happens to the equilibrium wage when demand for workers is high and supply is low?

It is set by the demand for labor at the lowest price. What generally happens to the equilibrium wage when demand for workers is low and supply is high? It gets higher.

What determines the equilibrium wage of labor?

In a competitive labor market, the equilibrium wage and employment level are determined where the market demand for labor equals the market supply of labor. Like all equilibrium prices, the market wage rate is determined through the interaction of supply and demand in the labor market.

What causes equilibrium wage to increase?

Just as in any market, the price of labor, the wage rate, is determined by the intersection of supply and demand. When the supply of labor increases the equilibrium price falls, and when the demand for labor increases the equilibrium price rises.

What happens to the equilibrium wage?

When the supply of labor increases the equilibrium price falls, and when the demand for labor increases the equilibrium price rises. Therefore, firms will continue to add labor (hire workers) until the MRPL equals the wage rate. Thus, workers earn a wage equal to the marginal revenue product of their labor.

What is the equilibrium wage and quantity?

At equilibrium, the quantity supplied and the quantity demanded are equal. Thus, every employer who wants to hire a nurse at this equilibrium wage can find a willing worker, and every nurse who wants to work at this equilibrium salary can find a job.