-Refer to Figure 9-1.If labor supply shifts from S 1 to S 2 ,what will happen to the real hourly wage rate?

When the labor supply increases, the real hourly wage rate typically decreases due to the higher supply of labor, and employment increases as more workers are hired at the lower wage.

-Refer to Figure 9-1.If labor supply shifts from S 1 to S 2 ,what will happen to the real hourly wage rate?

When the labor supply increases, the real hourly wage rate typically decreases due to the higher supply of labor, and employment increases as more workers are hired at the lower wage.

Solved

-Refer to Figure 9-1

Question 14

Multiple Choice

-Refer to Figure 9-1.If labor supply shifts from S₁ to S₂,what will happen to the real hourly wage rate?

A) It will remain constant and employment will increase to 130 million
B) It will fall to $15 and employment will increase to 120 million
C) It will fall to $10 and employment will remain at 110 million
D) It will fall to $15 and employment will remain at 110 million
E) It will fall to $15 and employment will fall to 100 million

Correct Answer: