The demand for household appliances increased due to an increase in consumers' incomes.This will lead to a ________,assuming all else equal.
A) leftward shift of the labor demand curve of this industry
B) rightward shift of the labor demand curve of this industry
C) leftward shift of the labor supply curve of this industry
D) rightward shift of the labor supply curve of this industry

Question

Quizplus · Accepted Answer

The increase in demand for household appliances due to an increase in consumers' incomes will lead to a rightward shift of the labor demand curve of this industry. This is because the increase in demand for household appliances will require firms to produce more, and as a result, they will need to hire more workers, increasing the quantity of labor demanded.

The Demand for Household Appliances Increased Due to an Increase