1.c. The quantity of labor supplied decrease.
2.d. Businesses demand labor in the labor market.
3.b. Inverse.
4.a. A decrease in the number of qualified car mechanics.
5.d. Decrease the wages of carpenters.
6.a. Higher wages for workers.
7.a. Marginal revenue product.
Explanation:
1. The demand for labour will decrease because
- Increasing wages increases the cost value of businesses which produces the products, and leading to hike in their selling prices, due to which consumers will buy now lesser.
- A increase in the wages can also make labour even more expensive relative to the capital so businesses can substitute capital for labour.
This means that less labour will be used.
2. The labor market is defined as the job market in which employees such as workers provide the supply to the market and employers like businesses provide the demand to the market.
3. As the wages increases,number of workers decreases and vice versa thus showing an inverse relationship between them.
4. A decrease in the number of qualified car mechanics will eventually increase the demand for them and hence it will lead to increasing wages of car mechanics.
5. A decreasing demand for carpenters would lessen the need of carpenters, leading to decrease the wages of carpenters.
6. Education and training might lower the wages of workers since the need and demand of workers get decreased.
7. The change in total profits to the change in the no. of inputs provided is defined as Marginal Revenue Product also known as MRP.Theoretically, it is the additional revenue generated during hiring an additional worker which is equivalent to usage of one more units of the input .
