The figure above shows the demand and supply curves for high-skilled (indicated by an "H" subscript) and low-skilled (indicated by an "L" subscript) workers.
-In the figure above,if the value of the marginal product of skill increased,then the

Question

Quizplus · Accepted Answer

An increase in the value of marginal product of skill will increase the demand for high-skilled workers, and hence shift the DH curve rightward. It will not affect the supply curves of either high-skilled or low-skilled workers. Therefore, option A, B, D, and E are not correct.

The Figure Above Shows the Demand and Supply Curves for High-Skilled