When workers are paid higher wages, production costs:
A) rise, supply shifts leftward, and product prices fall.
B) fall, supply shifts rightward, and product prices fall.
C) rise, supply shifts leftward, and product prices rise.
D) rise, supply shifts rightward, and product prices rise.

Question

Quizplus · Accepted Answer

When workers are paid higher wages, the cost of production increases, leading to a leftward shift in supply, which typically results in higher product prices.

When Workers Are Paid Higher Wages, Production Costs