If the price of hair styling increases, then
A) the value of marginal product of each hair stylist increases and the demand curve for hair stylists shifts rightward.
B) hair stylists demand an increase in wages and the salons hire fewer workers.
C) hair styling salons hire fewer workers but make more profit.
D) the value of marginal product of each hair stylist increases and the demand curve for hair stylists shifts leftward.

Question

Quizplus · Accepted Answer

When the price of hair styling increases, the value of the services provided by each hair stylist increases, leading to an increase in the value of their marginal product. This increase in value makes hair stylists more valuable to salons, shifting the demand curve for hair stylists rightward, indicating an increased demand for their services.

If the Price of Hair Styling Increases, Then