If the demand for labor increases and wages do not immediately adjust, there will be a...

If the demand for labor increases and wages do not immediately adjust, there will be a

	a.	surplus of workers, and the equilibrium wage will eventually fall.
	b.	shortage of workers, and the equilibrium wage will eventually fall.
	c.	surplus of workers, and the equilibrium wage will eventually rise.
	d.	shortage of workers, and the equilibrium wage will eventually rise.

Solutions

Expert Solution

Option d

shortage of workers and the equilibrium wage will eventually rise

The demand for labor increases means the demand curve shifts to the right and increases wages and quantity but there is no adjustment which means the market is in shortage and the wage is going to rise in the future.

Rahul Sunny answered 1 year ago

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