Restricting entry into a particular craft is likely to cause the wage in that craft to ________ and the quantity of labor employed in that craft to _______ .

Question

Quizplus · Accepted Answer

Restricting entry into a particular craft reduces the supply of labor in that craft, which typically leads to an increase in wages due to the scarcity of available workers. However, because of the higher wages, employers may hire fewer workers, leading to a decrease in the quantity of labor employed.

Restricting Entry into a Particular Craft Is Likely to Cause