A shift to the right in the supply curve for labor will usually lead to a lower equilibrium wage rate.

Question

Quizplus · Accepted Answer

A rightward shift in the supply curve for labor indicates an increase in the supply of labor. When there is more labor available than before, at the same demand, the equilibrium wage rate typically decreases because employers have more potential workers to choose from, reducing the price they need to pay for labor.

A Shift to the Right in the Supply Curve for Labor