Refer to the information provided in Figure 28.2 below to answer the question(s) that follow.
Figure 28.2Refer to Figure 28.2. If this firm pays the efficient wage of $11
A. the supply of labor will decrease until $11 is also the equilibrium wage.
B. there will be an excess supply of labor of 3,000.
C. the firm's demand for labor will increase until $11 is also the equilibrium wage.
D. there will be an excess supply of labor of 2,000.
Answer: B
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