A decrease in the demand for a product or service may result in a decrease in wages for people producing that item.

Name: A decrease in the demand for a product or service may result in a decrease in wages for people producing that item.
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Question

Quizplus · Accepted Answer

If the demand for a product or service decreases, there may be a surplus of supply and hence a decrease in the price. This can lead to lower profits for the businesses producing that item, which may ultimately result in reducing wages for the employees.

A Decrease in the Demand for a Product or Service