Suppose the market for pizza makers is initially in equilibrium, but then the equilibrium wage rate and the equilibrium quantity of labor both increased. What happened in the market for pizza makers?

Question

Quizplus · Accepted Answer

An increase in both the equilibrium wage rate and the equilibrium quantity of labor suggests that the demand for pizza makers increased. This is because higher demand for labor typically leads to higher wages and more employment.

Suppose the Market for Pizza Makers Is Initially in Equilibrium