Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions:

-If the wage is set temporarily at $15,it will need to ________ to restore equilibrium.
A) decrease to zero
B) increase to $35
C) fall
D) increase
E) remain unchanged

Question

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions:
 
-If the wage is set temporarily at $15,it will need to ________ to restore equilibrium.
A) decrease to zero 
B) increase to $35 
C) fall 
D) increase 
E) remain unchanged

Quizplus · Accepted Answer

At a wage of $15, there is a surplus of workers (demand is low compared to supply). When there is a surplus, the wage will need to increase to incentivize employers to hire more workers and workers to offer their labor. This will decrease the supply of workers and increase demand, bringing the labor market back to equilibrium.

Use the Following Table,which Shows the Supply and Demand Schedules