Assume consumer demand for CD-ROMs increases. The result is a(n):

Question

Quizplus · Accepted Answer

An increase in consumer demand for CD-ROMs will result in an increase in the demand for CD-ROM industry workers, leading to an increase in derived demand for workers in the industry (option A). With an increase in demand for CD-ROMs, the marginal revenue product (MRP) of firms in the industry will also increase due to an increase in revenue generated by the sale of CD-ROMs. This will lead to an increase in the MRP of workers in the industry (option B). Additionally, an increase in consumer demand will shift the market demand for labor curve in the CD-ROM industry to the right, resulting in an increase in both the wage rate and employment level (option C). Therefore, all of the above statements are correct and the correct answer is D.

Assume Consumer Demand for CD-ROMs Increases