All other things equal, when the wage increases: 1. the supply of labor decreases. 2. the quantity of labor supplied decreases. 3. the demand for labor decreases. 4. the quantity of labor demanded decreases. 5. the supply of labor increases.

Question

Alondra Blackburn

Business

14 February, 07:33

All other things equal, when the wage increases: 1. the supply of labor decreases. 2. the quantity of labor supplied decreases. 3. the demand for labor decreases. 4. the quantity of labor demanded decreases. 5. the supply of labor increases.

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Answers (1)

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Nunez · Answer 1

5 and 4

Explanation:

Increasing the amount in wages collected by Labor has an effect on both the workforce and the employers.

By increasing the amount of collected by labor, there is more willingness on the part of the workforce to work. This serves as a kind of boost to encourage labor to work more. Also, there is an increase in the number of labor who are willing to work and thus we can say the supply of labor will increase, all things being equal.

Meanwhile, for the firm, it is expected that the quantity of labor demanded by them will decrease. This is as a result of rising operational cost at the present new labor wages cost which might have an adverse effect on profit as they now spend more. Hence, naturally, there would be a decrease in the quantity of labor demanded by the firm