Answer:
A. Surplus; Fall
Step-by-step explanation:
When real wage rate exceeds equilibrium wage rate, there is a Surplus in Labour which in turn leads to a fall in the real wage rate. This is because as real wage rate increases, cost of production increases, which will lead to the firm increasing the prices of the product and services. When this happens, the demand of the product reduces which will then have a ripple effect back on the firm. At this point, the point needs to make a decision between reducing the real wage rate or reducing the number of labour. This is all assuming efficiency wage, union and minimum wage are absent.