Figure 10.3
-Figure 10.3 describes the labor market for a manufacturing industry. In the short run an increase in the price of the good made by the workers will

Question

Quizplus · Accepted Answer

An increase in the price of the good made by the workers in a manufacturing industry typically leads to an increase in demand for that good. This, in turn, increases the demand for labor to produce more of the good, leading to a rise in both the equilibrium wage and the hours of labor used as firms seek to increase production to meet the higher demand.

Figure 10.3 -Figure 10.3 Describes the Labor Market for a Manufacturing Industry