If wages are below the wage level that causes supply to equal demand,then there is
A) excess supply for labor.
B) excess demand for labor.
C) a market equilibrium.
D) unemployment.
E) inflation.

Question

Quizplus · Accepted Answer

If wages are below the wage level that causes supply to equal demand, it means that employers demand more labor than the number of workers willing to work at that wage level. This creates excess demand for labor, which could lead to labor shortages and a potential increase in wages if employers are willing to pay more to attract workers.

If Wages Are Below the Wage Level That Causes Supply