All else equal,when the supply of workers is plentiful,we can expect market wages to be

Question

Quizplus · Accepted Answer

When the supply of workers is plentiful (i.e. there is an oversupply of workers), there is less competition among employers to hire workers. As a result, employers do not have to offer high wages to attract workers. Instead, they can offer lower wages and still attract workers because there are more workers than available jobs. Thus, we can expect market wages to be relatively low.

All Else Equal,when the Supply of Workers Is Plentiful,we Can