Question

which of the following would result from low labor demand and higher demand and high labor supply
wages stat the same
wages rise
wages rise dramatically
wages decline

Answer 1

From the given options, the most likely outcome of low labor demand and high labor supply with wages remaining the same or not changing would be that wages decline. This is because when there is a surplus of labor (high labor supply) and limited job opportunities (low labor demand), employers have the advantage and can negotiate lower wages.

Wages rising or rising dramatically would generally be a result of high labor demand and limited labor supply, where employers are willing to pay higher wages to attract and retain workers. Since the scenario you provided indicates a low labor demand, it is unlikely that wages would rise in such a situation.