If the labor supply is unchanged, an increase in the demand for labor will
A)increase the equilibrium wage and decrease the number of workers employed.
B)increase the equilibrium wage and increase the quantity of jobs demanded.
C)decrease the equilibrium wage and increase the number of workers employed.
D)increase the equilibrium wage and increase the number of workers employed.

Question

Quizplus · Accepted Answer

An increase in the demand for labor will lead to increased competition among employers for workers, resulting in an increase in the equilibrium wage. As a result, firms may hire more workers to meet the increased demand for their products or services, leading to an increase in the number of workers employed. Thus, choice D describes the effect of an increase in the demand for labor.

If the Labor Supply Is Unchanged, an Increase in the Demand