Question

Suppose a sailboat factory and a fishing boat factory exist in the same town. Employees at both factories have the same skills and are initially paid the same wage rate. If the sailboat manufacturer increases the hourly wage paid to his employees, then the

Answer 1

quantity supplied of labor at the sailboat factory will increase.

Step-by-step explanation:

If it happens that the sailboat manufacturer increases the hourly wage paid to his employees, then the more employees will rush to the sailboat thereby increasing the quantity supplied of labor at the sailboat factory.