2130EconomicsMedium
If, for any reason the wage is held above the competitive equilibrium wage?
AThe quantity of labour demanded will exceed the quantity of labour supplied and there will be a labour shortage
BThe quality of workers in the applicant pool will tend to fall
CUnions will likely Strike and the wage will fall to equilibrium
DThe quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment
Correct answer
D. The quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment
Explanation
The correct answer is The quantity of labour supplied will exceed the quantity of labour demanded and there will be Unemployment.