After a school-catering firm receives more orders for lunches, its demand for trained kitchen workers increases. The supply of these workers is unchanged.
What is the most likely effect immediately before the wage has adjusted to the new situation?
There is excess demand, which puts downward pressure on the wage.
There is excess supply, which puts downward pressure on the wage.
There is excess demand, which puts upward pressure on the wage.
There is excess supply, which puts upward pressure on the wage.
80 exam-style questions on OCR GCSE Economics 2.7 The labour market, covering 2.7.1 Role and operation of the labour market, 2.7.2 Determination of wages, 2.7.3 Explain gross and net pay, and 2.7.4 Calculate gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.