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

Question

Quizplus · Accepted Answer

An increase in the demand for motorcycles will lead to an increase in the production of motorcycles, requiring more motorcycle workers to be employed. This will increase the demand for motorcycle workers and increase their wages. A and B are incorrect because an increase in demand will cause an increase in price and quantity bought and sold, respectively. C is incorrect because an increase in demand will increase the demand for motorcycle workers and possibly increase their wages.

Other Things Constant, an Increase in the Demand for Motorcycles