The wage rate at which the labour market is in equilibrium is a point where.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Labour Demand = Labour Supply
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The equilibrium wage rate in the labour market is determined at the point where:
Labour Demand = Labour Supply -
At this wage rate: Employers are willing to hire exactly the number of workers that workers are willing to supply. There is no excess demand (labour shortage) or excess supply (unemployment).
Other Options:
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Labour demand = 0: This would imply no demand for labor, which is not an equilibrium condition in a functional market.
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Labour Supply = Labour Demand = 0: This implies that there is no activity in the labour market, which is not an equilibrium point for a functioning market.
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Wages = Marginal Revenue from labour × Price: This formula represents the firm's profit-maximizing condition for hiring labour (Wage = Marginal Revenue Product of Labor).