Consider the graph below.

Compared to the competitive market equilibrium, what effect does a monopsonist have on the quantity of labor supplied? Is there a surplus or a shortage?

a$.)$

A shortage of labor is created $($W subscript E $$ W subscript M$).$

b$.)$

A shortage of labor is created $($Q subscript E $$ Q subscript M$).$

c$.)$

A surplus of labor is created $($W subscript E $$ W subscript M$).$

d$.)$

A surplus of labor is created $($Q subscript E $$ Q subscript M$).$