Which of the following decreases in labor demand is due to a change in the price of a related resource?
A) A decline in the demand for computers in Europe reduces the demand for workers in the domestic computer industry.
B) The rise of hair salons for both men and women reduces the demand for barbers.
C) A decrease in the educational skills of manufacturing workers decreases the demand for such workers.
D) An increase in the price of chemical equipment increases the cost of producing fertilizer, thus decreasing the demand for workers who make fertilizer.

Question

Quizplus · Accepted Answer

An increase in the price of a related resource, such as chemical equipment, can increase the cost of production for a good or service, leading to a decrease in demand for labor in that industry. In this case, the increased cost of producing fertilizer decreases the demand for workers who make fertilizer. The other options (A, B, and C) do not involve a change in the price of a related resource affecting labor demand.

Which of the Following Decreases in Labor Demand Is Due