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Question: 8 suppose that in a competitive output market firms hire...

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8. Suppose that in a competitive output market, firms hire labor from a competitive labor market (so that the profit maximization conditions for hiring labor are as we discussed in class). If the demand for the product these firms sell increases, so that the market price of this product increases, we would expect a. a decrease in equilibrium wage wand no change in equilibrium quantity of labor, L b. a decrease in w and an increase L c. an increase in we d. a decrease in we, and a decrease L. e. an increase in, w, and an increase in L and a decrease L

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