A 10 Percent Increase in the Wage Rate Induces Firms

A 10 percent increase in the wage rate induces firms in an industry to reduce quantity demanded for labor by 5 percent in the first year. Five years later we would expect, other things constant,

A) the reduction in the quantity demanded of labor to be much greater than 5 percent.
B) the reduction in the quantity demanded of labor to be less than 5 percent.
C) the reduction in the quantity demanded of labor to be about 5 percent.
D) the quantity demanded of labor to be back to its original level.