At £18 per hour, the local market for wind-turbine maintenance technicians is initially in equilibrium. Demand for wind-turbine maintenance services then increases. The supply of technicians is unchanged.
| Situation | Technicians demanded | Technicians willing to work |
|---|---|---|
| Initial equilibrium at £18 per hour | 200 | 200 |
| After demand for maintenance services increases, at £18 per hour | 300 | 200 |
What is the most likely effect on the equilibrium wage and employment? Explain your answer.
80 exam-style questions on OCR GCSE Economics 2.7 The labour market, covering 2.7.1 Role and operation of the labour market, 2.7.2 Determination of wages, 2.7.3 Explain gross and net pay, and 2.7.4 Calculate gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.