In the following graph, QS1 is the supply curve for labour and QD1 and QD2 are the demand curves for labour. Refer to the graph to answer the question.

When QD1 shifts to QD2, _____.

the equilibrium quantity of labour and the wage level remain unchanged
the supply of labour exceeds the demand for labour
the quantity of labour supplied increasesCorrect
the wage level falls to W3

Explanation
When the demand for labour increases and supply remains unchanged, the equilibrium quantity of labour and the wage level increase.