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Does the Law of Supply Apply to Labor Markets

Question 40

Multiple Choice

Does the law of supply apply to labor markets?


A) Yes, because all workers will increase the number of hours they work if their wages increase.
B) Yes, because some workers who are less committed to the labor force, like teenagers, will decide to work if wages increase.
C) No, because the laws of supply and demand both apply only to product markets.
D) No, because workers have no control over the number of hours they work.

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