An increase in the demand for apples will cause all but which of the following ?
Correct answer: A. a decrease in the number of apple pickers employed
- A. a decrease in the number of apple pickers employed
- B. an increase in the value of the marginal product of apple pickers
- C. an increase in the price of apples
- D. an increase in the wage of apple pickers
Explanation
Greater demand for apples raises their price, increasing the value of the marginal product and demand for apple pickers. Employment and wages should rise, not fall.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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