Other things constant, an increase in the demand for bicycles will
A) decrease the price of bicycles.
B) decrease the quantity of bicycles bought and sold.
C) decrease the demand for bicycle workers and lower their wages.
D) increase the demand for bicycle workers and increase their wages.

Question

Quizplus · Accepted Answer

An increase in the demand for bicycles will lead to an increase in production, which in turn increases the demand for bicycle workers, potentially raising their wages.

Other Things Constant, an Increase in the Demand for Bicycles