Regarding the labor market. define the terms worker surplus and producer surplus (I.e. what do economists means when they refer to worker surplus and producer surplus).

Assume that the supply and demand for labor remain unchanged. Would a wage rate above the equilibrium wage rate lead to a storage or surplus of labor? Would an increase in the wage rate decrease or increase producer surplus? Explain.

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Worker surplus refers to the benefit or gain that workers receive when the actual wage they receive ... View the full answer