In a labor market, if there is a significant increase in demand for goods produced by a certain industry, what is likely to happen to the equilibrium wage and employment levels in that industry?

When there is a significant increase in demand for goods produced by a certain industry, it means that more people want to buy those goods. To meet this demand, companies in that industry will need to produce more, which often requires hiring additional workers. As a result, the demand for labor in that industry increases, leading to higher employment levels as companies seek to fill more positions. With more jobs available, workers may demand higher wages, pushing the equilibrium wage up as employers compete to attract and retain employees. For example, if a factory that makes bicycles sees a surge in orders, it may hire more workers and raise wages to ensure they can keep up with production.