Which of the following will lead to a decrease in the equilibrium quantity of workers hired and an increase in the equilibrium wage rate?
A) an increase in the productivity of workers
B) an increase in the rate of immigration
C) a decrease in the price level of goods
D) a decrease in the rate of immigration

Question

Quizplus · Accepted Answer

A decrease in the rate of immigration reduces the supply of labor, leading to a decrease in the equilibrium quantity of workers hired and an increase in the equilibrium wage rate as the labor market adjusts to the lower supply.

Which of the Following Will Lead to a Decrease in the Equilibrium