Figure 10.3 describes the labor market for a manufacturing industry. In the short run, an increase in the productivity of the workers will:
A. cause the equilibrium wage and the hours of labor used to increase.
B. not have an effect on this market.
C. cause the equilibrium wage to increase but will not change the hours of labor used.
D. cause the equilibrium wage to increase and the hours of labor used to decrease.
Answer: A
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