Which of the following would cause an increase in the equilibrium wage?
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 demand for labour, while holding the supply of labour constant, would cause an increase in the equilibrium wage as employers would need to offer higher wages to attract the same quantity of workers.

Which of the Following Would Cause an Increase in the Equilibrium