When an increase in demand for stand-up paddleboards rises, then the demand for skilled paddleboard shapers _____, and their marginal revenue product _____.

Question

Quizplus · Accepted Answer

When demand for stand-up paddleboards increases, the demand for skilled paddleboard shapers also rises because more paddleboards need to be produced. Consequently, their marginal revenue product increases as each additional shaper contributes to producing more of the now higher demanded product, thus generating more revenue.

When an Increase in Demand for Stand-Up Paddleboards Rises, Then