Benny employs people to sell candy bars at intersections.Assume that Benny can obtain candy bars to sell for no cost.The marginal product of the last worker Benny hired is 20 candy bars per hour.Benny pays $7 per worker per hour and sells the candy bars for $1 each.If the price of candy bars rises to $2,then the:

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If the price of candy bars rises, Benny's revenue will increase and his profit margin will expand. This will enable him to hire additional workers to sell more candy bars, which will increase the demand for labor.

Benny Employs People to Sell Candy Bars at Intersections