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Figure: Equilibrium in the Labour Market
-(Figure: Equilibrium in the Labour Market)Use Figure: Equilibrium in the Labour Market.In the figure,an increase in the productivity of labour,when everything else stays the same,will lead to a(n)_____ in the equilibrium quantity of labour and a(n)_____ in the equilibrium price of labour.
A) decrease;increase
B) increase;decrease
C) decrease;decrease
D) increase;increase

Question

Use the following to answer questions :
Figure: Equilibrium in the Labour Market 
-(Figure: Equilibrium in the Labour Market)Use Figure: Equilibrium in the Labour Market.In the figure,an increase in the productivity of labour,when everything else stays the same,will lead to a(n)_____ in the equilibrium quantity of labour and a(n)_____ in the equilibrium price of labour.
A) decrease;increase 
B) increase;decrease 
C) decrease;decrease 
D) increase;increase

Quizplus · Accepted Answer

An increase in the productivity of labor typically leads to an increase in the demand for labor, as firms are willing to hire more workers at higher productivity levels. This results in an increase in both the equilibrium quantity and the equilibrium price (wage) of labor.

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