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Equilibrium Wage

Published on Mar 26, 2016

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PRESENTATION OUTLINE

EQUILIBRIUM WAGE

ERICK BELTRAN & CEDRIC
Photo by Leo Reynolds

Definition:
Wage rate that produces neither an excess demand for workers in the labor market.

Untitled Slide

When is equilibrium:
There's no pressure to raise or lower the price.

When it's not equilibrium:
If stores won't hire many teens, and many teens want jobs. The wage becomes low.

But if stores are hiring teens, but not many teens want to work, then the wage will become higher.