Figure 12-2 -If an Unanticipated Increase in Demand in Figure 12-2 Shifts

question 140

Multiple Choice

Figure 12-2

-If an unanticipated increase in demand in Figure 12-2 shifts the demand for accountants from D₁ to D₂, how will the higher level of demand influence the wages of accountants in the short run and the long run?

• A)In the short run, wages will increase to W2, but the wage increase will be smaller in the long run.
• B)In the short run, wages will be less than W2, but in the long run, they will rise to W2.
• C)In the short run, wages will increase to W2, and in the long run, they will be even higher than W2.
• D)Employment will increase, but the higher level of demand will not alter the wages of accountants.

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