When the wage is above the equilibrium level,
A)the labor market is functioning more efficiently than it otherwise would function.
B)there is a shortage of labor.
C)the quantity of labor supplied exceeds the quantity of labor demanded.
D)job search is the primary explanation for the unemployment that is observed.

Question

Quizplus · Accepted Answer

When the wage is above the equilibrium level, the quantity of labor supplied exceeds the quantity of labor demanded, leading to a surplus of labor, or unemployment.

When the Wage Is Above the Equilibrium Level