Which of the following can increase simultaneously the equilibrium quantity of workers hired and the equilibrium wage rate?
A) an increase in the productivity of workers
B) an increase in the rate of immigration
C) a decrease in the price level of goods
D) a decrease in the number of workers of retiring age

Question

Quizplus · Accepted Answer

An increase in the productivity of workers makes them more valuable to employers, leading to a higher demand for labor. This increased demand can raise both the equilibrium wage rate and the quantity of workers hired as employers are willing to pay more for productive workers and also hire more of them.

Which of the Following Can Increase Simultaneously the Equilibrium Quantity