In a competitive labor market, a decrease in labor supply will:

Name: In a competitive labor market, a decrease in labor supply will:
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In a competitive labor market, a decrease in labor supply (meaning there are fewer workers available) typically leads to an increase in wages because employers have to compete more aggressively to hire the limited number of workers. However, the higher wages can lead to a reduction in the number of employees that businesses can afford to hire, thus reducing employment.

In a Competitive Labor Market, a Decrease in Labor Supply