Suppose the government grants child care subsidies to mothers entering the labour force.What is likely to happen to the equilibrium wage and quantity of labour?

Question

Quizplus · Accepted Answer

The subsidy encourages more mothers to enter the labor force, increasing the supply of labor. This increase in labor supply typically leads to a decrease in the equilibrium wage and an increase in the equilibrium quantity of labor.

Suppose the Government Grants Child Care Subsidies to Mothers Entering