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

-(Exhibit: Wage Determination in Perfect Competition) An increase in population, all other things unchanged, will tend to:
A) shift D₁ to the right.
B) lead to an increase in S₁.
C) raise the market wage.
D) lead to a decrease in S₁.

Question

Use the following to answer question(s): Wage Determination in Perfect Competition
 
-(Exhibit: Wage Determination in Perfect Competition) An increase in population, all other things unchanged, will tend to:
A) shift D₁ to the right. 
B) lead to an increase in S₁. 
C) raise the market wage. 
D) lead to a decrease in S₁.

Quizplus · Accepted Answer

An increase in population increases the supply of labor (S₁), as more people are available to work, leading to a potential decrease in market wage due to higher supply, assuming demand remains constant.

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