What does the vertical axis represent in the labour market graph?
Understand the Problem
The question is asking for an explanation of what the vertical axis indicates in a labor market graph, which typically represents the wage rate or salary levels.
Answer
The vertical axis represents the wage rate or salary.
The vertical axis represents the wage rate or salary in the labor market graph.
Answer for screen readers
The vertical axis represents the wage rate or salary in the labor market graph.
More Information
In economics, labor market graphs are used to illustrate the interaction between employers and workers. The vertical axis, representing wage rate or salary, reflects the 'price' of labor, helping visualize how wages are determined based on supply and demand.
Tips
A common mistake is to confuse the axes. Remember, in the labor market graph, the vertical axis always represents the wage rate, while the horizontal axis represents the quantity of labor.
Sources
- Demand and Supply at Work in Labor Markets - Lumen - courses.lumenlearning.com
- What is The Labor Market Diagram? | IB Macroeconomics - YouTube - youtube.com
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