The diagram below shows the demand and supply curves for skilled labour (D$_s$ and S$_s$) and unskilled labour (D$_u$ and S$_u$) and the wage differential (W$_s$–W$_u$) between the two types of labour.
All other things being equal, which one of the following is most likely to cause a decrease in the wage differential?
1 )
A fall in the demand for unskilled workers
2 )
A fall in the size of the labour force
3 )
An increase in the demand for skilled workers
An increase in the proportion of the labour force with a degree
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