If the supply of labor in a purely competitive labor market decreases,the labor:
A) supply curve for a single employer will shift downward.
B) supply curve for a single employer will shift upward.
C) demand curve for a single employer will shift upward.
D) demand curve for a single employer will shift downward.

Question

Quizplus · Accepted Answer

In a purely competitive labor market, if the overall supply of labor decreases, the supply curve for a single employer will shift upward, indicating that the employer must offer higher wages to attract the reduced number of available workers.

If the Supply of Labor in a Purely Competitive Labor