Figure 12-2 -If an Unanticipated Increase in Demand in Figure 12-2 Shifts

Multiple Choice

Figure 12-2

-If an unanticipated increase in demand in Figure 12-2 shifts the demand for accountants from D₁ to D₂, how will the higher level of demand influence the wages of accountants in the short run and the long run?

A) In the short run, wages will increase to W2, but the wage increase will be smaller in the long run.
B) In the short run, wages will be less than W2, but in the long run, they will rise to W2.
C) In the short run, wages will increase to W2, and in the long run, they will be even higher than W2.
D) Employment will increase, but the higher level of demand will not alter the wages of accountants.