Which of the following would cause an increase in the equilibrium wage? a)The demand for labor increases faster than the supply
of labor. b)The supply of labor increases more than the demand for labor. c)The supply of jobs increases less than the demand for jobs. d) The supply of labor increases and the demand for labor decreases.
A. The demand for labor increases faster than the supply of labor.
Explanation:
When the demand for labor increase faster than the supply, the employees will have more options to choose and the employers have to compete with other employers in order to obtain them.
This will make the employers raise the wages/salary that they offer in order to attract the employees and cause an increase in the equilibrium wage.
