Suppose the wage rate in a certain industry rises, yet firms hire more workers. The best explanation of this is that labor

Question

Quizplus · Accepted Answer

When the wage rate rises, firms would normally want to hire fewer workers in order to reduce their costs. However, if they end up hiring more workers despite the higher wage rate, it likely means that the demand for labor in that industry has increased. This could be due to changes in market conditions or increased productivity.

Suppose the Wage Rate in a Certain Industry Rises, Yet