If a labor market has wages above the equilibrium level, it could be because
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Step 1: There is a shortage of labor in the market, meaning that there are more job openings than there are workers available to fill them. Show more…
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Suppose that the market for labor is initially in equilibrium. An increase in the price of output will cause Group of answer choices the equilibrium wage and the quantity of labor to both rise. the equilibrium wage and the quantity of labor to both fall. the equilibrium wage to rise and the quantity of labor to fall. the equilibrium wage to fall and the quantity of labor to rise.
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Suppose that the market for labor is initially in equilibrium. A decrease in the price of output will cause the equilibrium wage and the equilibrium quantity of labor to rise. and the equilibrium quantity of labor to fall. to rise and the equilibrium quantity of labor to fall. to fall and the equilibrium quantity of labor to rise.
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