2. Suppose the labor market is at equilibrium at a wage rate of $20 and 100 people are working. Now the demand for labor falls and the new equilibrium is at $15 and 80 individuals working. Still, employers may prefer to pay a wage rate of $20 (and keep only, say, 60 individuals working) because a. they don't want people working for them who are disgruntled - this could be costly to the firm. b. they think it is the fair thing to do