Assume the market for handkerchiefs is competitive. A new invention leads to labor-augmenting technological progress in the production of handkerchiefs. This development
A) decreases the demand for workers who make handkerchiefs and decreases their equilibrium wage.
B) increases the demand for workers who make handkerchiefs and increases their equilibrium wage.
C) increases the supply of workers who make handkerchiefs and decreases their equilibrium wage.
D) increases the supply of workers who make handkerchiefs and increases their equilibrium wage.
Correct Answer:
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