Exhibit 4-4 Supply and demand curves for good X
-An increase in the wage rate paid to workers producing good X would be represented by which of the graphs in Exhibit 4-4?

Question

Exhibit 4-4 Supply and demand curves for good X 
-An increase in the wage rate paid to workers producing good X would be represented by which of the graphs in Exhibit 4-4?

Quizplus · Accepted Answer

An increase in the wage rate paid to workers producing good X would increase the cost of producing the good and lower the supply of the good. This would shift the supply curve to the left. Graph B is the only graph that shows a leftward shift in the supply curve, indicating a decrease in supply due to an increase in cost.

Exhibit 4-4 Supply and Demand Curves for Good X