Due to a recession, Hostess Bakeries found that the demand for its products decreased. The demand for products ________ the demand for bakers and ________ the equilibrium wage rate paid to bakers.

Question

Quizplus · Accepted Answer

During a recession, a decrease in demand for products leads to a decrease in demand for bakers, which in turn lowers the equilibrium wage rate paid to bakers due to reduced need for labor.

Due to a Recession, Hostess Bakeries Found That the Demand