When labour supply increases, the equilibrium wage rises and employment increases.

Name: When labour supply increases, the equilibrium wage rises and employment increases.
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

When labour supply increases, it leads to a decrease in the equilibrium wage as there are more people willing to work at a lower wage. However, employment may increase due to the lower wage, making it more affordable for employers to hire.

When Labour Supply Increases, the Equilibrium Wage Rises and Employment