The demand for computers increases. As a result
A) the quantity demanded of workers increases, the wage rate rises, and the supply of labor increases.
B) the demand for workers increases, hiring increases, but wages stay the same since each firm faces a horizontal supply curve of labor.
C) the wage rate increases in the industry and the quantity demanded of workers falls.
D) the wage rate increases in the industry and the quantity supplied of workers increases.
Answer: D
You might also like to view...
In the figure above, the demand curve shifts rightward from D0 to D1. There are no rent controls. In the short run, the increase in demand results in
A) higher rents and a decrease in the equilibrium quantity. B) lower rents and a decrease in the equilibrium quantity. C) higher rents and an increase in the equilibrium quantity. D) lower rents and an increase in the equilibrium quantity.
Above-normal returns on stock investments can be expected by investors who
A) possess insider information. B) are wealthy enough to hold the stock of many different companies in their portfolios. C) are risk seeking. D) concentrate their investments in one or two stocks.