Suppose that jeans dramatically decrease in popularity. All else equal, how will this affect the labor market for workers in jeans factories?The labor demand for workers in jeans factories will decrease. The wage for workers in jeans factories will increase. The labor supply of workers in jeans factories will decrease.

Question

Quizplus · Accepted Answer

The labor demand for workers in jeans factories will decrease because if jeans decrease in popularity, fewer jeans will be sold, leading to a reduced need for production and, consequently, for workers in jeans factories. This does not directly affect the wage or the labor supply without further information on market reactions.

Suppose That Jeans Dramatically Decrease in Popularity