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- Consider the market for grapes. An increase in the wage paid to grape pickers will cause the:

a-
demand curve for grapes to shift to the right, resulting in a higher equilibrium price for grapes and a reduction in the quantity consumed.
b-
demand curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and an increase in the quantity consumed.
c-
supply curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and a decrease in the quantity consumed.
d-
supply curve for grapes to shift to the left, resulting in a higher equilibrium price for grapes and a decrease in the quantity consumed.

Answer :

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Answer:

d- supply curve for grapes to shift to the left, resulting in a higher equilibrium price for grapes and a decrease in the quantity consumed.

Explanation:

supply curve for grapes to shift to the left, resulting in a higher equilibrium price for grapes and a decrease in the quantity consumed. An increase in the price of factors of production leads to a supply contraction. When the supply is contracted, the graph moves towards top to the left. Businesses have limited capital and when the wage rates increase it would lead to higher amount paid to workers and lower amount left to purchase raw materials, to spend on advertising, etc. This whole phenomenon leads to a decrease in supply ,obviously an increase in the price of the good and a decrease in the quantity consumed

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