Use the accompanying table, which shows the supply and demand schedules for workers in the country of Hovian, to answer the questions that follow.

-If the wage is set temporarily at $15,it will need to __________ in order to restore equilibrium.
A) decrease to zero
B) increase to $35
C) fall
D) increase
E) remain unchanged

Question

Use the accompanying table, which shows the supply and demand schedules for workers in the country of Hovian, to answer the questions that follow.
 
-If the wage is set temporarily at $15,it will need to __________ in order to restore equilibrium.
A) decrease to zero 
B) increase to $35 
C) fall 
D) increase 
E) remain unchanged

Quizplus · Accepted Answer

If the wage is set temporarily at $15, it will need to increase in order to restore equilibrium because the quantity of labor supplied will be less than the quantity of labor demanded at that wage.

Use the Accompanying Table, Which Shows the Supply and Demand