Multiple Choice
A local labor market for lawn-mowing workers is initially in equilibrium.If researchers develop a new inexpensive grass seed that provides a lush,slow-growing lawn,which of the following will occur in the short run?
A) Both labor demand and labor supply will drop,leading to a higher wage rate but lower employment.
B) Both labor demand and labor supply will rise,leading to a lower wage rate and lower employment.
C) Labor demand will drop,leading to a lower wage rate and higher employment.
D) Labor supply will drop,leading to a higher wage rate and lower employment.
E) Labor demand will drop,leading to a lower wage rate and lower employment.
Correct Answer:

Verified
Correct Answer:
Verified
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