alleryStart learning →Without a union, labor market equilibrium occurs at the intersection of labor supply and:
ALabor demand
BProduct supply
CCapital demand
DMoney supply
Answer & Solution
Correct answer: A. Labor demand
1. A labor market clears like any other market.
2. If no labor union existed in this market, equilibrium would occur at an intersection.
3. That is the intersection of the demand for labor and the supply of labor.
4. The wage at that point is the equilibrium wage.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 15 'Labor Markets and Income'_
Keep practising Labor Markets and Income
Browse all Labor Markets and Income questions for AP Microeconomics, or explore more Economics topics.
Related questions
Complete the union storyTap what belongs to each sideOrder the union bargaining chainTrue or false: labor marketsMatch each labor market termLabor markets are described as one example of a broader category, namely:A union that wins higher wages without any productivity gain raises the firm's:The 15,080 dollars earned at full-time minimum wage was compared with a 2016 public univer