Other things equal, when the supply of workers is low, one would predict that market wages would be
A)relatively high.
B)relatively low.
C)determined solely by factors that affect demand.
D)determined outside the domain of economic theory.

Question

Quizplus · Accepted Answer

When the supply of workers is low and demand for workers remains the same, employers have to bid up wages to attract workers. This leads to relatively higher wages in the market.

Other Things Equal, When the Supply of Workers Is Low