Suppose the wage earned by pear pickers suddenly rises. Which of the following effects would we most likely observe as a result?
A)The supply of apple pickers would decrease and the equilibrium wage of apple pickers would decrease.
B)The supply of apple pickers would decrease and the equilibrium wage of apple pickers would increase.
C)The demand for apple pickers would increase and the equilibrium wage of apple pickers would decrease.
D)The demand for apple pickers would decrease and the equilibrium wage of apple pickers would decrease.

Question

Quizplus · Accepted Answer

When the wage for pear pickers increases, some workers who were picking apples may switch to picking pears to take advantage of the higher wages. This would decrease the supply of apple pickers. With fewer apple pickers available, their equilibrium wage would increase due to the reduced supply.

Suppose the Wage Earned by Pear Pickers Suddenly Rises