An increase in the supply of labour in a factory while other things remain equal will lead to?

Answer Details

An increase in the supply of labour in a factory while other things remain equal will lead to a decrease in the wage rate and an increase in employment. This is because the supply of labour will increase, while the demand for labour remains constant. This will create a surplus of labour in the market, which will put downward pressure on wages. As the wage rate decreases, firms will find it more affordable to hire additional workers, leading to an increase in employment. Therefore, the correct option is that an increase in the supply of labour in a factory while other things remain equal will lead to "a decrease in the wage rate and an increase in employment".