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Assume That the Labor Market for House Painters Is in Equilibrium

Question 47

Multiple Choice

Assume that the labor market for house painters is in equilibrium. An increase in the price of painting a house would:


A) shift labor demand to the right, increasing the equilibrium wage and number of painters employed.
B) shift labor supply to the right, decreasing the equilibrium wage and increasing the number of painters employed.
C) shift labor demand to the left, decreasing the equilibrium wage and number of painters employed.
D) shift labor supply to the left, increasing the equilibrium wage and decreasing the number of painters employed.

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