Which of the following is likely to cause flour mills to increase their demand for labor?

Question

Quizplus · Accepted Answer

An increase in the price of bread would likely cause an increase in demand for flour mills, as they would need to produce more flour to meet the increased demand for bread. This would in turn increase the demand for labor in flour mills. A decrease in the wage rate (A) would typically decrease labor costs, but would not necessarily increase demand for labor. An increase in the wage rate (B) would increase labor costs for flour mills and potentially decrease their demand for labor. A decrease in the price of flour products (D) may also decrease demand for labor, as flour mills may produce less flour in response to lower prices.

Which of the Following Is Likely to Cause Flour Mills