During the industrial revolution, the United States saw increases in the demand for labor and increases in the supply of labor. The increase in real wages rose during this period is consistent with which of the following statements?

Question

Quizplus · Accepted Answer

An increase in the demand for labor coupled with an increase in the supply of labor would lead to an increase in wages if the rightward shift in the labor demand curve was greater than the rightward shift in the labor supply curve. This is because the increase in demand for labor would have raised equilibrium wages, but the increase in supply would have tempered the rise in wages. Therefore, if the demand curve shift is greater than the supply curve shift, wages would rise.

During the Industrial Revolution, the United States Saw Increases in the Demand