Asked by Deijah Drakeford on Apr 28, 2024
Verified
If the wage is kept above the equilibrium level for any reason, the result is unemployment.
Equilibrium Level
The state in which market supply and demand balance each other, resulting in stable prices and quantities.
Unemployment
The situation when people who are willing to work at prevailing wage rates cannot find jobs.
- Ascertain the various forms and reasons for unemployment occurring from wages being established above equilibrium.
Verified Answer
PM
Parin MuntahaApr 28, 2024
Final Answer :
True
Explanation :
When the wage is kept above the equilibrium level, the quantity of labor supplied by workers exceeds the quantity of labor demanded by employers, leading to unemployment because there are more workers willing to work at that wage than there are jobs available.
Learning Objectives
- Ascertain the various forms and reasons for unemployment occurring from wages being established above equilibrium.
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