Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for iPods. You predict that the major effect will be that the

Question

Quizplus · Accepted Answer

If wages for workers producing iPods and similar products rise next year, it will increase the cost of production, which will shift the supply curve leftward. As a result, the equilibrium price of iPods will increase, and the quantity demanded will decrease, leading to a leftward shift in the demand curve. This means that consumers will likely purchase fewer iPods at the higher prices, resulting in a decrease in demand. Thus, option D is the best answer.

Wages for Workers Producing IPods and Similar Products Will Rise