If, at a Particular Wage Rate in a Competitive Market

Multiple Choice

If, at a particular wage rate in a competitive market, the quantity demanded of labor exceeds the quantity supplied of labor, then

A) the supply curve will shift to the left, the demand curve will shift to the right, and the surplus of labor will be eliminated.
B) since wages are so low, the quantity supplied of workers will decrease further, and the quantity demanded will increase further.
C) the wage rate will fall since the labor market is experiencing a surplus.
D) the supply curve will shift to the right, the demand curve will shift to the left, and the shortage of labor will be eliminated.
E) the wage rate will rise since the labor market is experiencing a shortage.