When a labor market experiences a surplus of labor,there is downward pressure on:
A) the demand for labor.
B) the supply of labor.
C) wages.
D) derived supply.

Question

Quizplus · Accepted Answer

When there is a surplus of labor, meaning there are more individuals seeking employment than there are jobs available, there is downward pressure on wages. This is because employers have their pick of employees and can offer lower wages to attract workers. This can result in a decrease in overall wages in the labor market.

When a Labor Market Experiences a Surplus of Labor,there Is