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Other Things Held Constant in a Competitive Labor Market, If

Question 72

Multiple Choice

Other things held constant in a competitive labor market, if workers negotiate a contract in which the employer agrees to pay an hourly wage rate of $17.85 while the market equilibrium hourly wage rate is $16.50, the:


A) quantity of workers supplied will exceed the quantity of workers demanded.
B) quantity of workers demanded will exceed the quantity of workers supplied.
C) demand for labor will increase until the equilibrium wage rate is $17.85.
D) supply of labor will decrease until the equilibrium wage rate is $17.85.

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