Refer to Figure 6.3.2. If the real wage is $20 an hour, a labour 43) A) surplus occurs and the real wage rises. B) surplus occurs and the demand for labour increases. C) surplus occurs and the real wage falls. D) shortage occurs and the real wage falls. E) shortage occurs and the real wage rises.

Real wage rate (2007 dollars per hour) 25 LS 20 15 10 5 LD 50 100 150 200 250 300 Labour (billions of hours per year)