The equilibrium wage falls and the equilibrium quantity of labor rises
When the wage rate paid to labour is below equilibrium wage, then labour is undersupplied. As firms require more labour to maximise their profit, they will slowly raise their wage rate (because revenue from labour > costs) until the equilibrium level is achieved (since no more profit is achieveable at this level).
Wage goes down.
Wage goes down.
an extra demand for workers
The equilibrium wage falls and the equilibrium quantity of labor rises
Wage goes down.
Wage goes down.
When the wage rate paid to labour is below equilibrium wage, then labour is undersupplied. As firms require more labour to maximise their profit, they will slowly raise their wage rate (because revenue from labour > costs) until the equilibrium level is achieved (since no more profit is achieveable at this level).
Balance
Wage goes down.
Wage goes down.
Wage goes down.
an extra demand for workers
an extra demand for workers
Firms employ fewer workers than they would at the equilibrium wage.
The critical time is a politent of social workers.