Figure 18-2

-Refer to Figure 18-2.What happens to the profit earned by apple producers and to the wage earned by apple pickers when the price of apples rises

Question

Figure 18-2
 
-Refer to Figure 18-2.What happens to the profit earned by apple producers and to the wage earned by apple pickers when the price of apples rises

Quizplus · Accepted Answer

When the price of apples rises, the revenue earned by apple producers increases, leading to a rise in profits. As the demand for apple pickers also increases, wages for apple pickers rise due to the limited supply of labor. Therefore, both profits and wages will rise.

Figure 18-2 -Refer to Figure 18-2.What Happens to the Profit Earned by the Profit