You observe that more labour is employed and the wage rate increases. This set of events could have been the result of a
A) leftward shift of the labour supply curve.
B) rightward shift of the labour demand curve.
C) leftward shift of the labour demand curve.
D) rightward shift of the labour supply curve.

Question

Quizplus · Accepted Answer

A rightward shift of the labour demand curve indicates that employers are willing and able to hire more workers at each wage level, which can lead to both an increase in employment and an increase in the wage rate.

You Observe That More Labour Is Employed and the Wage