If at a Particular Wage Rate in a Competitive Labour

question 42

Multiple Choice

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.

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