A decrease in the supply of labor could be caused by

Question

Quizplus · Accepted Answer

If wage rates increase in another industry, it will attract workers who will shift from their current industry to that industry. This will result in a decrease in the supply of labor in the original industry. Therefore, option D is the correct answer. Option A is incorrect because falling wage rates in another industry will encourage workers to switch to other industries, increasing the supply of labor. Options B and C are also incorrect because better working conditions and job flexibility will attract more workers, increasing the supply of labor.

A Decrease in the Supply of Labor Could Be Caused