An increase in the wage rate will cause

Question

Quizplus · Accepted Answer

An increase in the wage rate will lead to an upward movement along the labor supply curve, as workers are willing to supply higher quantities of labor at a higher wage rate. It does not cause increased employment (choice A) as this depends on other factors such as the demand for labor. It also does not result in a leftward shift in the labor supply curve (choice B) or a shift in the labor demand curve (choice E). A rightward shift in the labor supply curve occurs when there is an increase in the number of workers available at each wage rate, which is not the case here.

An Increase in the Wage Rate Will Cause