-The graph shows the labor market for painters.The lower the wage rate,the ________ is the quantity of painters that firms demand and the ________ is the quantity of painters that households are willing to supply.
A) greater; smaller
B) greater; greater
C) smaller; greater
D) smaller; smaller
E) None of the above answers is correct because both the demand and supply curves will shift in response to the change in the wage rate.

Question

-The graph shows the labor market for painters.The lower the wage rate,the ________ is the quantity of painters that firms demand and the ________ is the quantity of painters that households are willing to supply.
A) greater; smaller 
B) greater; greater 
C) smaller; greater 
D) smaller; smaller 
E) None of the above answers is correct because both the demand and supply curves will shift in response to the change in the wage rate.

Quizplus · Accepted Answer

In the labor market, as the wage rate decreases, firms will demand more labor because it is cheaper (greater quantity demanded), while households (workers) will be less willing to supply labor at lower wages (smaller quantity supplied).

-The Graph Shows the Labor Market for Painters