Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, the equilibrium wage in the labor market for computer programmers
A)increased.
B)decreased.
C)did not change.
D)It is not possible to determine the equilibrium wage.

Question

Quizplus · Accepted Answer

The increase in the value of marginal product of computer programmers indicates an increase in demand for their services. Holding all else constant (e.g. supply of programmers), this increase in demand would shift the demand curve to the right, causing an increase in equilibrium wage.

Consider the Labor Market for Computer Programmers