The determination of wages in a labour market depends on the_______

  • A Government
  • B People
  • C Interaction between demand and supply of labour
  • D Economy

The correct answer is C. Interaction between demand and supply of labour

Irrespective of the presence of labour unions, labour laws and other forces, the interaction between dd and ss of labour determines the wages in a labour market i.e where dd for labour equals ss of labour.

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