A Change in the Relative Price of One Good Versus

Multiple Choice

A change in the relative price of one good versus another will cause a change in marginal product and the allocation of labor resources. When the price of good A increases relative to the price of good B and labor is mobile, the equilibrium real wage in industry A will:

A) rise in terms of good B.
B) fall in terms of good B.
C) remain the same.
D) rise in terms of good A.