Assume the Market for Candles Is Competitive

question 328

Multiple Choice

Assume the market for candles is competitive. A new invention leads to labor-augmenting technological progress in the production of candles. This development

• A)decreases the demand for workers who make candles and decreases their equilibrium wage.
• B)increases the demand for workers who make candles and increases their equilibrium wage.
• C)increases the supply of workers who make candles and decreases their equilibrium wage.
• D)increases the supply of workers who make candles and increases their equilibrium wage.

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