According to Classical economists, if the quantity of labor supplied exceeds the quantity demanded, 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

According to Classical economists, when the quantity of labor supplied exceeds the quantity demanded, there will be a surplus of labor. This means that there will be more workers than available jobs. As a result, employers will have the upper hand and can offer lower wages, leading to a fall in wages. Therefore, the correct option is D: surplus of labor and wages will fall.

According to Classical Economists, If the Quantity of Labor Supplied