1 points
If the individual receives $5 per hour and is in equilibrium at point E. his or her income at this equilibrium point must
be?
Answers
Answer :
The individual's income at this equilibrium point cannot be determined from the information given. The statement "the individual receives $5 per hour" only provides information about the individual's hourly wage, not their total income. To calculate the individual's income, the number of hours worked per week or month would also need to be known. Additionally, the concept of "equilibrium at point E" is not defined in the statement, so it is unclear what is meant by this term and how it relates to the individual's income.
Explanation :
The income of an individual is defined as the amount of money they receive for the work they do. If an individual is receiving $5 per hour, it can be assumed that this is their hourly wage. In economics, the concept of equilibrium refers to a state where the supply and demand for goods or services are equal, and there are no excess supplies or shortages.
In this case, if the individual is in equilibrium at point E, it can be assumed that they are fully employed and their supply of labor is equal to the demand for their labor at a wage rate of $5 per hour. Their income at this equilibrium point would be the product of their hourly wage and the number of hours they work. So, if they work a standard 40 hour workweek, their income would be $5 x 40 = $200 per week.
It is important to note that this is just an example and the actual income of the individual could be higher or lower depending on the number of hours they work and the wage rate they receive. The concept of income and equilibrium is an important part of economics and helps to understand the supply and demand for labor in the market.
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Answer:
If an individual is in equilibrium at point E, their income at this point must be $40.
Explanation:
From the above question,
They have given :
If the individual receives $5 per hour and is in equilibrium at point E, his or her income at this equilibrium point must be
a. $40.
b. $55.
c. $65.
d. $80.
e. indeterminate
Equilibrium in economics refers to a state where there is no excess demand or supply, meaning that the quantity of goods or services supplied is equal to the quantity demanded at a particular price.
An individual's income at an equilibrium point will depend on the number of hours they work and the rate at which they are paid.
So, if an individual is receiving $5 per hour and is in equilibrium, it is possible that their income at this point could be different from $40.
This creates an equilibrium point, at which both labor supply and labor demand are equal and the wage rate is determined. Therefore, if an individual is in equilibrium at point E, their income at this point must be $40.
The actual income will depend on the number of hours they have worked.
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