Question

we learned how changes in the product markets cause changes in the labor markets. consider the market for candles, and suppose there is a decrease in demand for candles. what happens? a. increases the demand for workers who make candles and decreases their equilibrium wage. b. decreases the demand for workers who make candles and increases their equilibrium wage. c. decreases the demand for workers who make candles and decreases their equilibrium wage. d. increases the demand for workers who make candles and increases their equilibrium wage.

Answer 1

If there is a decrease in demand for candles, it c. decreases the demand for workers who make candles and decreases their equilibrium wage.

The concept of equilibrium wages is intimately connected to supply and demand forces in the market. As we have already shown, in fully competitive markets, supply and demand decide how much a good or service costs. The labor markets still hold true to this instance. According to the supply and demand for labor, wages change.

Employment and equilibrium salaries are directly related in a market that is competitive. In a perfectly competitive economy, the intersection of the labor supply and demand curves represents the pay equilibrium.

According to traditional economic theory, the employment rate will be at its highest if salaries are entirely flexible. In addition to cyclical and structural unemployment, the flexible pay rate guarantees that everyone is employed.

To know more about equilibrium wages:

https://brainly.com/question/14718127

#SPJ4