Suppose That the Market for Labor Is Initially in Equilibrium

question 459

Multiple Choice

Suppose that the market for labor is initially in equilibrium. A decrease in the price of output will cause the equilibrium wage

• A)and the equilibrium quantity of labor to rise.
• B)and the equilibrium quantity of labor to fall.
• C)to rise and the equilibrium quantity of labor to fall.
• D)to fall and the equilibrium quantity of labor to rise.

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