A reduction in workers' marginal productivity would result in

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A reduction in workers' marginal productivity means that they are producing less output per hour worked. As a result, firms are willing to pay them less and equilibrium wage rate decreases. This will also lead to a decrease in the quantity of labor supplied, but it is the decrease in the wage rate that is the most immediate and direct effect. An increase in labor supply or equilibrium employment level would require some other change in the labor market, such as an increase in the number of workers or a decrease in the wage rate for reasons other than a decrease in marginal productivity.

A Reduction in Workers' Marginal Productivity Would Result in