Figure 10.3
-In Figure 10.3 a decrease in the supply of labor will cause the equilibrium

Question

Quizplus · Accepted Answer

A decrease in the supply of labor will lead to a scarcity of available workers, causing employers to increase wages in order to attract workers. However, since there are fewer workers available, firms will reduce the number of hours of labor used. Therefore, the equilibrium wage will increase, but the equilibrium quantity of labor hired will decrease.

Figure 10.3 -In Figure 10.3 a Decrease in the Supply of Labor