Which of the following would cause the wage for computer programmers to increase?

• A. An increase in the supply of computer programmers entering the labor market
• B. A decrease in the productivity of computer programmers
• C. A decrease in the demand for computer programmers due to automation
• D. An increase in the demand for computer programmers by firms

Answer: (D)

Verified step by step guidance

1. Understand that the wage for computer programmers is determined by the intersection of labor supply and labor demand in the market.
2. Recall that an increase in the supply of computer programmers (more workers available) tends to put downward pressure on wages, as more workers compete for the same jobs.
3. Recognize that a decrease in productivity means each programmer produces less output, which typically reduces the demand for their labor and thus lowers wages.
4. Note that a decrease in demand for computer programmers, such as from automation replacing some tasks, reduces the number of jobs available, leading to lower wages.
5. Conclude that an increase in the demand for computer programmers by firms means more jobs or higher value placed on their work, which tends to increase wages.