If, for Any Reason, the Wage Is Held Above the Competitive

question 36

Multiple Choice

If, for any reason, the wage is held above the competitive equilibrium wage,

• A)the quantity of labour supplied will exceed the quantity of labour demanded and there will be unemployment.
• B)unions will likely strike and the wage will fall to equilibrium.
• C)the quantity of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage.
• D)the quality of workers in the applicant pool will tend to fall.