Other things equal, assume consumer demand for children's toys increases. The result is a(n):

Question

Quizplus · Accepted Answer

An increase in consumer demand for children's toys would lead to a rightward shift in the market demand for labor curve in the toy industry, as firms would need to hire more workers to produce the increased quantity of toys. This would also lead to an increase in the marginal revenue product of firms in the toy industry, as the increased demand would allow firms to charge higher prices for their toys, leading to higher revenues and profits. Finally, the increase in consumer demand for children's toys would also lead to an increase in derived demand for workers in the toy industry, as the increased production of toys would require more workers to produce them.

Other Things Equal, Assume Consumer Demand for Children's Toys Increases