When a labor market experiences a surplus of labor, there is downward pressure on
A)the supply of labor.
B)the final product price.
C)wages.
D)the demand for labor.

Question

Quizplus · Accepted Answer

A surplus of labor means that the supply of labor exceeds the demand for labor. This situation puts downward pressure on wages because employers have more potential workers to choose from, and workers may be willing to accept lower wages to secure employment.

When a Labor Market Experiences a Surplus of Labor, There