An increase in the real wage rate will cause
A)the labour supply curve to shift to the right.
B)the labour demand curve to shift to the left.
C)both the labour supply curve and the labour demand curve to shift to the right.
D)a movement along the labour demand curve.

Question

Quizplus · Accepted Answer

An increase in the real wage rate will cause a movement along the labour demand curve, as firms will adjust the quantity of labor they demand based on the higher cost of labor.

An Increase in the Real Wage Rate Will Cause