Advanced robotics become a much stronger substitute production factor than labor to produce Good A. At the same time, the government increases licensing requirements to be a laborer producing Good A. What would happen to the market equilibrium quantity of labor and wage rate for specialized labor to produce A?

a.The quantity of labor increases, and the wage rate increases.

b. The quantity of labor decreases, and the wage rate increases.

c. The effect on the quantity of labor is indeterminate, and the wage rate decreases.

d. The quantity of labor decreases, and the effect on the wage rate is indeterminate.

e. The quantity of labor and the wage rate both remain constant.