Assume the Market for Candles Is Competitive

Multiple Choice

Assume the market for candles is competitive. A new invention leads to labor-augmenting technological progress in the production of candles. This development

A) decreases the demand for workers who make candles and decreases their equilibrium wage.
B) increases the demand for workers who make candles and increases their equilibrium wage.
C) increases the supply of workers who make candles and decreases their equilibrium wage.
D) increases the supply of workers who make candles and increases their equilibrium wage.