Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It decreases
B
It remains the same
C
It increases
D
It becomes zero
Understanding the Answer
Let's break down why this is correct
Answer
When there is an increase in the demand for labor, it means that more employers want to hire workers. This higher demand leads to more job opportunities, which can make it harder for employers to find the workers they need. As a result, employers may offer higher wages to attract more candidates. This increase in wages continues until a new balance, or equilibrium, is reached between the number of workers available and the number of jobs offered. For example, if a company starts a new project and needs more employees, it might raise salaries to draw in more applicants, causing the overall wage in that market to increase.
Detailed Explanation
When more companies want to hire workers, they compete for employees. Other options are incorrect because Some might think that more demand means lower wages; It may seem like wages stay the same, but they actually rise with higher demand.
Key Concepts
Labor supply
Topic
Labor Supply and Demand Graphing
Difficulty
easy level question
Cognitive Level
understand
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