Which of the following increases in labor demand is due to a change in the price of a related resource?
A)Software sales rise, thus increasing the demand for software developers.
B)Snowboarding increases in popularity, thus increasing the demand for the workers who make snowboards.
C)A decrease in the price of wood decreases the cost of furniture, thus increasing the demand for furniture workers.
D)A technological change increases output per worker in the computer industry, thus increasing the demand for computer workers.

Question

Quizplus · Accepted Answer

The correct answer is C because it directly involves a change in the price of a related resource (wood) that affects the cost of production for furniture, leading to an increased demand for furniture workers as the cost of production decreases and potentially the demand for furniture increases.

Which of the Following Increases in Labor Demand Is Due