Supply & Demand - Market Labor Question?

Question

Assuming that all apple-producing firms have similar output tables, show the effects of the increase in the price of apples on the market for apple pickers.

Here is the graph (which is what I'm supposed to toggle with supply & demand of this question) and Table: http://i35.tinypic.com/2m3ibl5.jpg

so will the supply increase or decrease and will the demand increase or decrease? - this is the MAIN QUESTION I'd like to get an answer for. Thanks!

Answer 1

Because of increase in price of apples (firms output) firms will demand more labor to produce apples (MRP will increase) - thus demand for labor will shift rightward which consequently will lead to new equilibrium with higher wage and more labor employed. Supply of labor will remain unchanged (no shifts).