Asked by
Tyler Barbre
on Nov 26, 2024
Verified
Which of the following decreases in labor demand is due to a change in product demand?
A) An increase in the price of paper increases the cost of making books, thus decreasing the demand for bookbinders.
B) The widespread availability of news on the web reduces the demand for newspaper workers.
C) An increase in the price of steel increases the cost of producing cars and trucks, thus decreasing the demand for automobile workers.
D) A decline in productivity in retailing decreases the demand for retail sales workers.
Product Demand
The desire for a specific good or service supported by the capacity and willingness to purchase it at a given price.
Labor Demand
Labor demand refers to the quantity of labor that employers are willing and able to hire at a given wage rate in a given market.
Price of Paper
The cost at which paper is sold or bought in the market.
- Understand the impact of product demand in determining labor demand.
Verified Answer
MR
Learning Objectives
- Understand the impact of product demand in determining labor demand.