An economy has the production function

Y=L+10,

whereY= output, andL= labor. The labor market is perfectly competitive. If there is an increase in labor supply,

• A.

The wage will fall, and the labor share of income will rise

• B.

The wage will fall, and the labor share of income will fall

• C.

The wage will fall, and the labor share of income will remain the same

• D.

The wage will rise, and the labor share of income will fall

• E.The wage will remain the same, and the labor share of income will rise
• F.The wage will rise and the labor share of income will rise
• G.The wage and the labor share of income will both remain the same