When the supply of workers is plentiful,what would one predict that market wages would be
A)determined outside the domain of the neoclassical theory
B)determined solely by factors that affect demand
C)low, other things equal
D)high, other things equal

Question

Quizplus · Accepted Answer

When the supply of workers is plentiful, the market becomes saturated with workers, leading to an excess supply of labor over demand. This will lead to lower wages, other things equal. Therefore, option C is the correct answer as it predicts lower wages. The other options are not correct because market wages are determined by both supply and demand factors, not solely by factors affecting demand, and the neoclassical theory applies to labor markets.

When the Supply of Workers Is Plentiful,what Would One Predict