Suppose the demand for strawberries rises sharply, resulting in an increased price for strawberries. As it relates to strawberry pickers, we could expect the
A)MRP curve to shift to the right.
B)MRP curve to shift to the left.
C)MRC curve to shift downward.
D)MP curve to shift downward.

Question

Quizplus · Accepted Answer

The MRP (Marginal Revenue Product) curve shifts to the right because the increased demand for strawberries leads to higher prices, which in turn increases the revenue generated from selling an additional unit of strawberries picked. This makes the value of the marginal product of labor (strawberry pickers) higher, shifting the MRP curve to the right.

Suppose the Demand for Strawberries Rises Sharply, Resulting in an Increased