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An innovation increases the relative demand for skilled workers by 20 percentage points at each value of the relative wage. In the intermediate run, the
An innovation increases the relative demand for skilled workers by 20 percentage points at each value of the relative wage. In the intermediate run, the relative supply of skilled workers changes by 10 percentage points. Which of the following are correct? (Select all that apply.) Group of answer choices After the innovation, the wage premium is 75 percent. The change in the wage premium incentivizes more people to acquire skills. Wage inequality changes less in the intermediate run than in the short run. In the long run, the relative supply of skilled must increase a total of 20 percentage points (including the intermediate change) to return the wage premium to its original value
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