Figure 18-5 -Refer to Figure 18-5. If the relevant labor supply curve is S 2 and the current wage is W 1 ,

Given the current wage is below the equilibrium wage where the supply of labor exceeds the demand for labor, there is a surplus of labor.

Figure 18-5 -Refer to Figure 18-5. If the relevant labor supply curve is S 2 and the current wage is W 1 ,

Given the current wage is below the equilibrium wage where the supply of labor exceeds the demand for labor, there is a surplus of labor.

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Figure 18-5 -Refer to Figure 18-5. If the Relevant Labor Supply Curve

Question 186

Multiple Choice

Figure 18-5 Figure 18-5 -Refer to Figure 18-5. If the relevant labor supply curve is S<sub>2</sub> and the current wage is W<sub>1</sub>, A) there is a surplus of labor. B) the quantity of labor demanded exceeds the quantity of labor supplied. C) an increase in the minimum wage could restore equilibrium in the market. D) firms will need to raise the wage to restore equilibrium.
-Refer to Figure 18-5. If the relevant labor supply curve is S₂ and the current wage is W₁,

A) there is a surplus of labor.
B) the quantity of labor demanded exceeds the quantity of labor supplied.
C) an increase in the minimum wage could restore equilibrium in the market.
D) firms will need to raise the wage to restore equilibrium.

Correct Answer: