Exhibit 11-4 Supply and demand curves for food servers

If the equilibrium wage rate in Exhibit 11-4 increased, the cause could be that:

Question

Exhibit 11-4 Supply and demand curves for food servers

If the equilibrium wage rate in Exhibit 11-4 increased, the cause could be that:

Quizplus · Accepted Answer

If the equilibrium wage rate increased, it means that the quantity demanded of labor exceeded the quantity supplied of labor at the previous wage rate, causing the wage rate to rise. This could be due to an increase in the demand for labor, meaning that firms are hiring more workers, or a decrease in the supply of labor, meaning that workers are less willing to work at the previous wage rate. The marginal product of labor and the price of the product produced by the labor are not directly related to the wage rate in this scenario.

Exhibit 11-4 Supply and Demand Curves for Food Servers