Consider the labor market for computer programmers,which is in equilibrium.During the late 1990s,the value of the marginal product of all computer programmers increased dramatically.Holding all else equal,what effect did this process have on the labor market for computer programmers?

Question

Quizplus · Accepted Answer

The increase in the value of the marginal product of computer programmers would cause an increase in the demand for their labor. This means that the demand curve shifts to the right, and the equilibrium wage and quantity of labor both increase. Holding all else equal, this is the likely effect on the labor market for computer programmers.

Consider the Labor Market for Computer Programmers,which Is in Equilibrium