Suppose a sailboat factory and a fishing boat factory exist in the same town. Employees at both factories have the same skills and are initially paid the same wage rate. If the sailboat manufacturer increases the hourly wage paid to his employees, then the

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When the sailboat manufacturer increases wages, more workers will be attracted to work there, increasing the quantity supplied of labor at the sailboat factory.

Suppose a Sailboat Factory and a Fishing Boat Factory Exist