Suppose a Sailboat Factory and a Fishing Boat Factory Exist

Multiple Choice

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

A) demand for sailboats will increase and the supply will decrease.
B) quantity supplied of labor at the sailboat factory will increase.
C) supply of labor at the fishing boat factory will increase.
D) demand for sailboats will decrease and the supply will increase.