If an excess quantity of labor demanded exists in a free market, there is a tendency for
A) quantity supplied to rise.
B) the wage rate to fall.
C) quantity demanded to fall.
D) the wage rate to rise.

Question

Quizplus · Accepted Answer

In a free market, if there is an excess quantity of labor demanded (meaning employers want to hire more workers than there are available), this increased competition for workers tends to push wages up. As employers are willing to pay more to attract the necessary employees, the wage rate rises.

If an Excess Quantity of Labor Demanded Exists in a Free