Question

Multiple Question answer. and graph for the justification of your answer:

An increase in the wage of plumbers

(a) increase the supply of plumbers

(b) decreases the supply of carpenters

(c) shifts the supply curve of plumbers left.

(d) reduces the demand for plumbers

Answer 1

C) The supply curve of plumbers shifts to the left.

Wages refer to the funds that an employee gets from an employer in exchange for work. The wage can be paid based on the time it takes to complete a job.

When workers' wages rise, the supply curve shifts to the left. This means that at certain price level, the rising cost of inputs into the goods (wages included) will cause less of that good to be produced. The curve shifts to the left because there is less opportunity to make a profit from that good. If the cost of other inputs, such as the cost of energy, rises, it will have a similar effect on the supply curve. Inputs are the resources necessary to produce the good, including workers' wages.