Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. What happens to the equilibrium wage and quantity of life guards?
A)Both the equilibrium wage and quantity increase.
B)Both the equilibrium wage and quantity decrease.
C)The equilibrium wage increases, and the equilibrium quantity decreases.
D)The equilibrium wage decreases, and the equilibrium quantity increases.

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The Answer of Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. What happens to the equilibrium wage and quantity of life guards?
A)Both the equilibrium wage and quantity increase.
B)Both the equilibrium wage and quantity decrease.
C)The equilibrium wage increases, and the equilibrium quantity decreases.
D)The equilibrium wage decreases, and the equilibrium quantity increases.

Suppose That the Labor Market for Life Guards Is Initially