Answer:
The owner realize that the wage rate of $12 per hour is below the equilibrium level of wage rate and decided to increase the wage rate because no worker can apply until the wage rate reaches to a point that is equal to the equilibrium level or above the equilibrium level.
The wage rate is the only factor that can be used by the firms and businesses to attract workers.
Answer:
When nobody applies for this position the owner realizes that this situation isn´t in equilibrium and decides increase the wage rate.
Explanation:
Work is a market with offer and demand. See graphic attached.
The market is in equilibrium when quantity demanded is the same to quantity supplied, at a current price.
As nobody applies, we can conclude that the price that the business is offering is low. They have to increase the price so the people is interested in the job.
