Other things being equal, an increase in wages paid to workers in firms making digital devices will cause
A)the quantity of digital devices demanded to increase.
B)the quantity of digital devices supplied to decrease.
C)the supply of digital devices to decrease.
D)the demand for digital devices to decrease.

Question

Quizplus · Accepted Answer

An increase in wages raises production costs, leading firms to supply fewer digital devices at each price level, thus decreasing supply.

Other Things Being Equal, an Increase in Wages Paid to Workers