If at a particular wage rate in a competitive labour market the quantity demanded of labour is less than quantity supplied of labour,then
A)some workers will begin to accept lower wages and induce employers to hire more workers.
B)there will be a shortage of labour,thereby increasing the equilibrium wage rate.
C)the demand curve for labour will shift to the right.
D)the supply curve for labour will shift to the right.
E)a black market for labour will form,with firms offering workers very high wages.

Question

Quizplus · Accepted Answer

When the quantity demanded of labour is less than the quantity supplied, there is a surplus of labour. Some workers may accept lower wages to increase their chances of being hired, which can lead to a decrease in the wage rate until equilibrium is reached.

If at a Particular Wage Rate in a Competitive Labour