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

If the equilibrium wage rate increased, it could be because either the demand for labor increased or the supply of labor decreased. Both of these factors would shift the equilibrium point to the right, resulting in a higher wage rate. A decrease in demand for labor would shift the curve to the left, resulting in a lower wage rate. An increase in supply of labor would also shift the curve to the right, resulting in a higher wage rate. However, the question asks for a possible cause of an increase in the equilibrium wage rate, which means that the supply of labor increasing or demand for labor decreasing would not be the answer.

Exhibit 10-3 Supply and Demand Curves for Food Servers