Skip to content
MathsGenie logo
Open app

Course home

  1. A Level
  3. Economics OCR
  5. Question bank

Demand for labour

EasyMediumHard
123456789101112
Question 7

What is the likely impact on the equilibrium wage rate and level of employment in a competitive labor market when there is a significant decrease in the market price of the final product produced by that industry?

Competitive Labor Market Shift

Employment: Decreases, Wage Rate: Decreases

Employment: Decreases, Wage Rate: Increases

Employment: Increases, Wage Rate: Decreases

Employment: Unchanged, Wage Rate: Decreases

Demand for labour Questions

  1. A Level
  2. /Economics
  3. /Demand for labour