If at the prevailing real wage rate, the quantity of labor supplied exceeds the quantity demanded,

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Quizplus · Accepted Answer

If the quantity of labor supplied exceeds the quantity demanded, it means there are more people willing to work at the prevailing wage rate than there are job openings available. This will lead to an increase in competition for jobs, which will ultimately drive down the real wage rate to its equilibrium level where the quantity of labor supplied equals the quantity demanded. Therefore, if the quantity of labor supplied exceeds the quantity demanded, the real wage rate is greater than the equilibrium real wage rate.

If at the Prevailing Real Wage Rate, the Quantity of Labor