A decrease in the supply of labour is likely to lead to ?
Correct answer: D. A higher equilibrium wage and lower quantity of labour
- A. A lower equilibrium wage and lower quantity of labour
- B. A lower equilibrium wage and higher quantity of labour
- C. A higher equilibrium wage and higher quantity of labour
- D. A higher equilibrium wage and lower quantity of labour
Explanation
A decrease in labour supply shifts the supply curve leftward. The new equilibrium has a higher wage but a lower quantity of labour employed.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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