michaeljennings
Active Member
What would happen when the demand for labour exceeds the supply of labour in a certain industry
a) The wage rate will fall and the level of employment will increase
b) The wage rate will rise and the level of employment will decrease
c) The wage rate will rise and the level of employment will increase
d) The wage rate will fall and the level of employment will decreased
So far i understand that the wage rate will rise, but i dont understand how the level of employment would decrease as the answer is B
Could someone explain this to me
a) The wage rate will fall and the level of employment will increase
b) The wage rate will rise and the level of employment will decrease
c) The wage rate will rise and the level of employment will increase
d) The wage rate will fall and the level of employment will decreased
So far i understand that the wage rate will rise, but i dont understand how the level of employment would decrease as the answer is B
Could someone explain this to me