Final answer:
An increase in the number of coffee shops signifies greater demand for coffee shop workers, leading to a rise in both the equilibrium wage and the equilibrium quantity of labor hired.
Step-by-step explanation:
If the number of coffee shops increases, we can analyze the consequences for the market of coffee shop workers by considering the laws of supply and demand in labor markets. Specifically, when there's an increase in the number of coffee shops, this represents an increase in the demand for coffee shop workers.
As a result, the equilibrium wage for coffee shop workers will rise, because more employers are competing to hire workers, which increases the price of labor. Additionally, the equilibrium quantity of labor hired will also rise, since more workers are needed to staff the additional coffee shops. A higher equilibrium wage incentivizes more individuals to work in coffee shops, increasing the supply of labor until the new equilibrium is reached. Therefore, the statements that the equilibrium wage will rise and the equilibrium quantity will rise are both correct.