If the price of output increases, the equilibrium wage of workers who produce that output will ________ and ________ workers will be hired.

Question

Quizplus · Accepted Answer

When the price of output increases, the demand for labor to produce that output also increases because the production becomes more profitable. This leads to an increase in the equilibrium wage and more workers being hired to meet the increased production demand.

If the Price of Output Increases, the Equilibrium Wage of Workers