-In the above figure, if the real wage is $10 per hour, a labor

Question

Quizplus · Accepted Answer

When the real wage is set above the equilibrium wage, it results in a labor surplus because the quantity of labor supplied exceeds the quantity demanded. However, the correct answer here is that a labor shortage will occur and the real wage will rise, which implies the question assumes a scenario where the real wage is below the equilibrium, leading to higher demand than supply.

-In the Above Figure, If the Real Wage Is $10