Assume consumer demand for CD-ROMs increases. The result is a(n):

Question

Quizplus · Accepted Answer

An increase in consumer demand for CD-ROMs will lead to an increase in the demand for workers in the CD-ROM industry, as firms will need to produce more CD-ROMs to meet the higher demand. This increase in demand will also lead to an increase in the marginal revenue product of firms in the CD-ROM industry, as they can sell more CD-ROMs at a higher price. As a result, the market demand for labor curve in the CD-ROM industry will shift rightward. Therefore, the correct answer is D, as all of the above statements are true.

Assume Consumer Demand for CD-ROMs Increases