Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions:

-If the wage is temporarily set at $25,it will need to ________ to restore equilibrium.
A) rise
B) fall
C) remain unchanged
D) decrease to zero
E) increase to $30

Question

Use the following table,which shows the supply and demand schedules for workers in the country of Hovian,to answer the following questions:
 
-If the wage is temporarily set at $25,it will need to ________ to restore equilibrium.
A) rise 
B) fall 
C) remain unchanged 
D) decrease to zero 
E) increase to $30

Quizplus · Accepted Answer

If the wage is set above the equilibrium level, there will be a surplus of labor (unemployment), as the quantity of labor supplied by workers exceeds the quantity of labor demanded by employers. To restore equilibrium, the wage would need to fall to balance supply and demand.

Use the Following Table,which Shows the Supply and Demand Schedules