The demand for labor is said to be a derived demand because it comes from the demand for goods that labor produces. Suppose that strawberries are a labor-intensive good.An increase in the price of strawberries will ________ the demand for strawberries,which will ________ the demand for strawberry pickers.
A)increase, increase
B)increase, decrease
C)decrease, increase
D)decrease, decrease

Question

Quizplus · Accepted Answer

An increase in the price of strawberries, assuming demand remains constant or increases, typically leads to higher revenue for producers. This can lead to an increased demand for labor to produce more strawberries, thus increasing the demand for strawberry pickers.

The Demand for Labor Is Said to Be a Derived