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If you observed the equilibrium wage increased, which of the following wou

If you observed the equilibrium wage increased, which of the following wou

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Understanding Equilibrium in Wage and Employment Dynamics** When examining labor market fluctuations, consider the following scenario: **Question:** If you observed the equilibrium wage rate increasing while equilibrium employment increased, which of the following would be a possible explanation? There was: - ○ an increase in labor supply - ○ a decrease in labor supply - ○ a decrease in labor demand - ○ an increase in labor demand This question is designed to assess your understanding of labor market dynamics and the relationship between supply and demand. Changes in labor supply or demand can affect both wages and employment levels, and understanding these shifts can provide insight into economic conditions and policy impacts.
Transcribed Image Text:**Understanding Equilibrium in Wage and Employment Dynamics** When examining labor market fluctuations, consider the following scenario: **Question:** If you observed the equilibrium wage rate increasing while equilibrium employment increased, which of the following would be a possible explanation? There was: - ○ an increase in labor supply - ○ a decrease in labor supply - ○ a decrease in labor demand - ○ an increase in labor demand This question is designed to assess your understanding of labor market dynamics and the relationship between supply and demand. Changes in labor supply or demand can affect both wages and employment levels, and understanding these shifts can provide insight into economic conditions and policy impacts.
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The equilibrium wage rate is decided where the demand and supply for the wage are equal.  when there is rise in the wage rate, it suggests that there is rise in the demand for the labor in the market.

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