Question

Which of the events in the table increase the equilibrium quantity of labor and which decrease the equilibrium quantity of​ labor?

An increase in the equilibrium quantity of labor is a result of​ ______.  

A decrease in the equilibrium quantity of labor is a result of​ ______.

1.

events 4 and​ 5; event 3

2.

event​ 1; event 2

3.

events 3 and​ 4; event 5

4.

events 3 and​ 5; event 4

5.

event​ 5; events 3 and 4

Event
1	The Middle East cuts supplies of oil to the United States.
2	The New York Yankees win the World Series.
3	U.S. labor unions negotiate wage hikes that affect all workers.
4	A huge scientific breakthrough doubles the output that an additional hour of U.S. labor can produce.
5	Migration to the United States increases the​ working-age population.

Answer 1

Answer- Option 4 is correct i.e, event 3 and 5 will increase the labor equilibrium quantity and event 4 will reduce the labor equilibrium quantity.

Explanation- Event 3 and 5 will increase the demand of labor. Event 3 and 5 talks about increasing the wages and supply of labours. Due to increase in wages more labor will be attracted and hence supply of labor will increase and we know in supply curve when price increases, quantity also increases. Supply curve will shift Rightward side, and equilibrium quantity will increase.

Event 4 talks about scientific innovation which will ultimately cut the labor work. Hence, in this quantity of labor will decrease, as more capital intensive work starts.