Other things held constant in a competitive labor market, if workers negotiate a contract in which the employer agrees to pay an hourly wage rate of $17.85 while the market equilibrium hourly wage rate is $16.50, the:
A. quantity of workers supplied will exceed the quantity of workers demanded.
B. supply of labor will decrease until the equilibrium wage rate is $17.85.
C. demand for labor will increase until the equilibrium wage rate is $17.85.
D. quantity of workers demanded will exceed the quantity of workers supplied.
Answer: A
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Answer the following statement true (T) or false (F)