Refer to the above graph. Suppose that a competitive firm in long-run equilibrium along MRP2 faces a market wage rate of W0. If the price of the firm's product increases, other things remaining the same, the effect of this change in price would be to:
A. Increase the firm's demand for labor from MRP2 to MRP3
B. Decrease the firm's demand for labor from MRP2 to MRP1
C. Move along MRP2 from point A to point B
D. Move along MRP2 from point B to point A
A. Increase the firm's demand for labor from MRP2 to MRP3
Economics
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