The equilibrium wage rate is $10 per hour, and the labor hired at that wage is 100.If the wage rate rises to $11, market forces will push the wage rate further up.

Question

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If the wage rate rises to $11, it is likely that employers may reduce their demand for labor or find alternative ways to substitute labor with capital or technology, which could lead to a decrease in the quantity of labor demanded. This could result in an excess supply of labor, leading to unemployment or underemployment. Hence, market forces may not necessarily push the wage rate further up.

The Equilibrium Wage Rate Is $10 Per Hour, and the Labor