Consider a labor market in equilibrium. If both demand curve and supply curve of labor shift to the right, then the number of workers hired in the market will ________.

Question

Quizplus · Accepted Answer

When both the demand and supply curves for labor shift to the right, it indicates an increase in the demand for workers and an increase in the supply of workers. The actual effect on wages is uncertain without knowing the magnitude of the shifts, but the number of workers hired in the market will increase because both employers want to hire more workers and more workers are willing to work.

Consider a Labor Market in Equilibrium