Other things equal, when the supply of workers is scarce, one would predict that market wages would be
A) relatively high.
B) relatively low.
C) determined solely by factors that affect demand.
D) determined outside the domain of economic theory.

Question

Quizplus · Accepted Answer

When the supply of workers is scarce, the competition among employers to hire the limited number of workers tends to drive wages up, resulting in relatively high market wages.

Other Things Equal, When the Supply of Workers Is Scarce