Other things held constant in a competitive labor market, if workers negotiate a

Question

Other things held constant in a competitive labor market, if workers negotiate a contract in which the employer agrees to pay an hourly wage of $17.85 while the market equilibrium hour rate is $16.50, the: a) a) supply of labor will decrease until the equilibrium wage rate is $17.85.

B) Demand for labor will increase until the equilibrium wage rate is $17.85.

C) Quantity of workers supplied will exceed the quantity of workers demanded.

d) Quantity of workers demanded will exceed the quantity of workers supplied.

Explanation / Answer

answer: C) Quantity of workers supplied will exceed the quantity of workers demanded.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.