Assume that this graph illustrates a perfectly competitive labor market.
If the supply of worker hours in this market shifted to the right

Question

Assume that this graph illustrates a perfectly competitive labor market. 
If the supply of worker hours in this market shifted to the right

Quizplus · Accepted Answer

A rightward shift in the supply curve would result in an increase in the number of worker hours supplied at any given wage level. This would cause a surplus of workers in the market, pushing down the equilibrium wage until it reaches a level where the quantity of labor supplied equals the quantity demanded. Therefore, option A is correct as it states that the equilibrium wage would fall and the number of worker hours would increase.

Assume That This Graph Illustrates a Perfectly Competitive Labor Market