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Assume that firms in an industry observe a 10% increase in the productivity of labor, but to get there they had to increase

the cost of labor by5%. What should be expected to happen in the output market as a result of this development?

 a. The supply should increase 

 b. The supply should decrease 

 c. The supply should remain unchanged 

 d. The demand should increase 

 e. The demand should decreased 

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/05/12
Safi Ullah
by Safi Ullah , Electrical Trainee Engineer , PESCO (Peshawar Electric Supply Company)

a. The supply should increase. 

Abdou warshan
by Abdou warshan , • مدير إدارة المخازن والنقل , شركة تمكين الدولية للأجهزة المنزلية

.............................. a. The supply should increase

Maurice Perera
by Maurice Perera , EXECUTIVE , Crown & Champa Resorts

correct answer is ...The demand should increase

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

 a.>>>>>>>>>>>>>>>>>>>>>>>>> The supply should increase 

Asad Ahmed
by Asad Ahmed , Manager Finance & Company Secretary , Connect Communications Pvt. Ltd.

by increasing it labor cost the supply should increase

Jose Miguel Lucas Martins
by Jose Miguel Lucas Martins , IT Director - Robotic Process Automation (RPA) , Novo Banco

The answer is a (the supply shound increase), given increasing marginal costs on the supply side. In terms of demand, if you assume that this dislocation of the supply curve happens along the demand curve, there are no changes.

Imtiaz Imtiaz khan
by Imtiaz Imtiaz khan , Accountant , stanley pharma

supply should increase

option A

 

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

 a. The supply should increase  is rightttttttttttttttttttttttttttttttttttttttttttttttttttttttt

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

 a.>>>>>>>>>>>>>>>> The supply should increase 

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: a. The supply should increase

Nasir Hussain
by Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

 a. The supply should increase..........................................

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