Exhibit 10-3 Supply and demand curves for food servers If the equilibrium wage rate in Exhibit 10-3 increased, the cause could be that:

Question

Exhibit 10-3  Supply and demand curves for food servers  If the equilibrium wage rate in Exhibit 10-3 increased, the cause could be that:

Quizplus · Accepted Answer

An increase in equilibrium wage rate could be due to either an increase in demand for labor or a decrease in supply of labor, both of which would cause an upward shift in the wage rate. A decrease in demand for labor or an increase in supply of labor would cause a downward shift in the wage rate. Option A is incorrect because an increase in supply of labor would cause a downward shift in the wage rate, not an increase. Option B is incorrect because a decrease in demand for labor would cause a downward shift in the wage rate, not an increase. Option D is incorrect because the question explicitly states that the equilibrium wage rate increased, so there must be a reason for that increase.

Exhibit 10-3 Supply and Demand Curves for Food Servers If