All other things being equal, an increase in the supply of labor will lead to a fall in the wage.

Question

Quizplus · Accepted Answer

When the supply of labor increases, it means there are more workers available for a certain number of jobs. As a result, employers have more options to choose from and may offer lower wages. This is because they can hire workers without having to pay as much. Therefore, an increase in the supply of labor leads to a fall in the wage, all other things being equal.

All Other Things Being Equal, an Increase in the Supply