An increase in the equilibrium wage would be caused by
A)the supply of labour increases more than the demand for labour.
B)the supply of jobs increases more than the demand for jobs.
C)the demand for labour increases faster than the supply of labour.
D)the supply of labour increases and the demand for labour decreases.

Question

Quizplus · Accepted Answer

An increase in the equilibrium wage would be caused by the demand for labour increasing faster than the supply of labour. When there is high demand for labour, employers are willing to pay more to attract workers, leading to an increase in the equilibrium wage. Options A, B, and D would lead to a decrease in the equilibrium wage.

An Increase in the Equilibrium Wage Would Be Caused by