Final answer:
An increase in the demand for labor faster than the supply causes an increase in the equilibrium wage because it creates competition among employers for workers, leading to higher wages. This scenario corresponds to option (a) of the provided choices.
Step-by-step explanation:
In the context of labor market economics, equilibrium wage changes in response to shifts in labor supply and demand. When the demand for labor increases at a faster rate than the supply of labor, this creates upward pressure on wages because businesses must compete for a limited pool of workers, which is illustrated by a shift of the demand curve from Do to D1 in various figures provided. As employers bid up wages to attract the necessary workforce, the equilibrium wage rises from Wo to W1, indicated by point (a) in the figures.
Conversely, if the supply of labor increases more than the demand, or if the demand decreases while the supply increases, there is downward pressure on wages. In these scenarios, more workers are seeking employment than there are jobs available, leading to unemployment rather than an increase in wages. Hence, options b and d would not lead to an increase in equilibrium wage.
Moreover, an increase in the supply of jobs that is less than the increase in the demand for jobs, similar to a rise in demand for labor, would cause an increase in the equilibrium wage. Companies would have to raise wages to attract the desired quantity of workers, reducing unemployment and leading to conditions of low unemployment and rising wage rates, as shown in different figures referenced.
Therefore, the correct option that would cause an increase in the equilibrium wage is: (a) The demand for labor increases faster than the supply of labor, which can also be related conceptually to option (c), where the supply of jobs increases less than the demand for jobs.