An increase in the supply of musicians ________ the number of musicians employed, and ________ the wages paid to musicians.

Question

Quizplus · Accepted Answer

According to the law of supply and demand, an increase in the supply of musicians (i.e. more musicians available for hire) will lead to a decrease in wages paid to musicians as the increased competition for jobs drives down wages. However, the increased supply may also lead to an increase in the number of musicians employed overall, since more musicians may be needed to fulfill the increased demand for live music or entertainment.

An Increase in the Supply of Musicians ________ the Number