When the Real Wage Is Below the Equilibrium Price in the Labor

question 79

Multiple Choice

When the real wage is below the equilibrium price in the labor market ________.

• A)we have an excess supply of labor and the real wage should fall
• B)we have an excess demand of labor and the real wage should fall
• C)we have an excess demand of labor and the real wage should increase
• D)we have an excess supply of labor and the real wage should increase
• E)none of the above

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing to offer for sale at a particular price over a given period of time.

Economy Moves

The dynamic changes and shifts in economic activity and trends over time, including growth, recession, and recovery phases.

Demand

The quantity of a product or service that consumers are willing and able to buy at a given price over a specified period.

Quantity Supplied

The complete quantity of a product or service that producers are prepared and can offer for sale at a certain price during a particular timeframe.