Assume That the Labor Market for Auto Mechanics Is Initially

Assume that the labor market for auto mechanics is initially in equilibrium.Which of the following would lead to an increase in both the wage rate and employment for auto mechanics?

A) a decrease in the price of a substitutable input
B) a decrease in the price of a complementary input
C) an increase in training costs for auto mechanics
D) a decrease in wages in an alternate labor market
E) a decrease in demand for the output of firms employing auto mechanics

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free