According to Classical economists, if the quantity of labor demanded exceeds the quantity supplied, there is a
A) surplus of labor and wages will rise.
B) shortage of labor and wages will fall.
C) shortage of labor and wages will rise.
D) surplus of labor and wages will fall.

Question

Quizplus · Accepted Answer

Classical economists argue that if the quantity of labor demanded exceeds the quantity supplied, it indicates a shortage of labor. According to the law of supply and demand, this shortage will lead to an increase in wages as employers compete to attract the limited number of workers.

According to Classical Economists, If the Quantity of Labor Demanded