An increase in the wages of fruit pickers will ultimately lead to a decrease in the supply of fruit and hence an increase in the price of fruit.

Question

Quizplus · Accepted Answer

When the wages of fruit pickers increase, the cost of labor for fruit farmers will increase, resulting in higher production costs. To maintain their profit margins, farmers may respond by reducing the amount of fruit they produce or increasing the price of their fruit, which ultimately leads to a decrease in the supply of fruit in the market and an increase in the price of fruit.

An Increase in the Wages of Fruit Pickers Will Ultimately