Real wages increased in industrialized countries in the twentieth century because the demand for labor:?

Question

Real wages increased in industrialized countries in the twentieth century because the demand for labor:

A. increased more rapidly than the supply of labor increased.

B. increased more slowly than the supply of labor increased.

C. increased, while the supply of labor decreased.

D. decreased, while the supply of labor increased.

E. decreased more slowly than the supply of labor increased.

Answer 1

Under rules of supply and demand, the price of a commodity increases when demand increases more porportionaly (decreases less proportionaly) relative to supply. Since the both supply (baby boomers) and demand (industrialization) increased during the 20th century, then I go for answer A.