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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'_
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