If wage falls below the rate determined by the market equilibrium, in which direction will it move and why?

When the wage rate falls below the equilibrium rate, it creates an excess demand for labor which will push the wage back toward the equilibrium.

Economics

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The market system is also known as:

A. Capitalism B. Socialism C. Central planning D. Production system

Economics

A negative supply shock ______ the amount producers will supply at any given price.

a. decreases b. increases c. destabilizes d. corrects

Economics