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

Question

Quizplus · Accepted Answer

An increase in the equilibrium wage rate and quantity of labor suggests that the demand for tortillas increased, leading to a higher production level. This would require more labor at a higher wage to meet the increased demand.

Suppose the Market for Tortillas Is Initially in Equilibrium, but Then