As the wage rate increases,the ________,assuming all else equal.

Question

Quizplus · Accepted Answer

When the wage rate increases, the quantity of labor supplied increases because workers are more likely to choose to work longer hours or enter the workforce if they can earn a higher wage. However, the demand for labor may decrease as employers may choose to substitute labor with cheaper alternatives like automation or reduce production altogether. Therefore, the correct choice is C - quantity of labor supplied increases.

As the Wage Rate Increases,the ________,Assuming All Else Equal