Scenario: The labor market equilibrium for ski patrol positions at Bridge Bowls Resort is shown in the figure below.

-Given the situation above and assuming that the wage is fixed at w*,How will the new quantity of labor (call it L₂) compare to L* and the equilibrium quantity of labor from the previous question ( call it L₁) ?
A) L₂ will be less than L₁ and L*.
B) L₂ will be greater than L₁ and less than L*.
C) L₂ will be less than L₁ and greater than L*.
D) L₂ will be greater than L₁ and L*.
Correct Answer:
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