Assume that firms in an industry observe a 10% increase in the productivity of labor, but to get there they had to increase

a. The supply should increase. 

.............................. a. The supply should increase

correct answer is ...The demand should increase

 a.>>>>>>>>>>>>>>>>>>>>>>>>> The supply should increase 

by increasing it labor cost the supply should increase

The answer is a (the supply shound increase), given increasing marginal costs on the supply side. In terms of demand, if you assume that this dislocation of the supply curve happens along the demand curve, there are no changes.

supply should increase

option A

 a. The supply should increase  is rightttttttttttttttttttttttttttttttttttttttttttttttttttttttt

 a.>>>>>>>>>>>>>>>> The supply should increase 

1. The correct answer was: a. The supply should increase. 

 a. The supply should increase..........................................

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