In a competitive labor market,it is observed that the equilibrium wage rate and employment level have both risen.One can infer that

Question

Quizplus · Accepted Answer

When both the equilibrium wage rate and employment level increase in a competitive labor market, it indicates that there is a higher demand for labor. This is because when the demand for labor increases, employers are willing to pay higher wages to attract workers, and as a result, more workers are hired, leading to an increase in the employment level. Therefore, the correct option is C, the demand for labor has increased.

In a Competitive Labor Market,it Is Observed That the Equilibrium