After 9/11 there was an increase in the number of people who became police officers and firemen.What does this imply about the labor market?
A) The quantity of labor supplied increased,and wages will increase.
B) The quantity of labor supplied increased,and wages will decrease.
C) The labor supply increased,and wages will increase.
D) The labor supply increased,and wages will decrease.
E) The labor supply increased,and wages will not change.

Question

Quizplus · Accepted Answer

An increase in the quantity of labor supplied means that there are more people willing and able to work as police officers and firemen. This increase in labor supply may lead to a decrease in wages, as the greater supply of workers means that the demand for their services may not keep up with the increase in supply. Therefore, choice D is the best answer.

After 9/11 There Was an Increase in the Number of People