Use the following to answer question(s): Wage Determination in Perfect Competition

-(Exhibit: Wage Determination in Perfect Competition) A(n) _______ in the ________ of (for) labor will result in a(n) _______ in _______ .
A) increase; supply; decrease; the wage rate
B) decrease; supply; decrease; the wage rate
C) decrease; demand; increase; the amount of labor hired
D) increase; demand; decrease; the amount of labor hired

Question

Use the following to answer question(s): Wage Determination in Perfect Competition
 
-(Exhibit: Wage Determination in Perfect Competition) A(n) _______ in the ________ of (for) labor will result in a(n) _______ in _______ .
A) increase; supply; decrease; the wage rate 
B) decrease; supply; decrease; the wage rate 
C) decrease; demand; increase; the amount of labor hired 
D) increase; demand; decrease; the amount of labor hired

Quizplus · Accepted Answer

According to the exhibit, an increase in the supply of labor will result in a decrease in the wage rate, and vice versa. Therefore, choice A is the correct answer as an increase in the supply of labor will result in a decrease in the wage rate.

Use the Following to Answer Question(s): Wage Determination in Perfect