The assumption of the upward sloping supply curve that offers of higher pay will increase supply will most likely NOT hold when _____.
A)absenteeism is high
B)turnover is low
C)unemployment is low
D)unemployment is high

Question

Quizplus · Accepted Answer

When unemployment is already low, it suggests that the labor market is tight and there is little excess supply of labor. Thus, offering higher pay may not necessarily result in an increase in the supply of labor, as there may not be enough available workers to meet the demand.

The Assumption of the Upward Sloping Supply Curve That Offers