If the supply of labor is perfectly inelastic, then an increase in the demand fo
ID: 1097022 • Letter: I
Question
If the supply of labor is perfectly inelastic, then an increase in the demand for labor causes:
an increase in the equilibrium quantity of labor employed with no change in the wage rate.
an increase in the wage rate with no change in the equilibrium quantity of labor employed.
an increase in both the equilibrium quantity of labor employed and the wage rate.
no change in either the equilibrium quantity of labor employed or the wage rate.
a.an increase in the equilibrium quantity of labor employed with no change in the wage rate.
b.an increase in the wage rate with no change in the equilibrium quantity of labor employed.
c.an increase in both the equilibrium quantity of labor employed and the wage rate.
d.no change in either the equilibrium quantity of labor employed or the wage rate.
Explanation / Answer
C an increase in both the equilibrium quantity of labor employed and the wage rate.
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