An increase in the supply of labour in an industry is likely to lead to a lower wage and a higher number of people employed.

Question

Quizplus · Accepted Answer

According to basic economic principles, if the supply of labor in an industry increases (all else being equal), this typically leads to lower wages because there are more workers available than jobs. Employers have more choices and can offer lower wages. At the same time, because labor is cheaper, employers might hire more workers, leading to a higher number of people employed.

An Increase in the Supply of Labour in an Industry