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

Question

Quizplus · Accepted Answer

An increase in worker productivity will shift the labor demand curve to the right, leading to an increase in both the equilibrium wage and the equilibrium quantity of labor hired. This means that the employers are willing to pay higher wages to workers who are more productive, and are also willing to hire more workers at those higher wages. Therefore, the answer is A.

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