Suppose a college increases the wages paid to student employees. Which of the following options is the best description of the most likely effect of the increase in wage earnings on the demand curve for school sweatshirts in the bookstore?
A) The demand curve shifts to the right.
B) The demand curve shifts to the left.
C) a leftward movement along the demand curve
D) a rightward movement along the demand curve

Question

Quizplus · Accepted Answer

An increase in wages increases the purchasing power of student employees, likely increasing their demand for goods, including school sweatshirts. This is represented by a rightward shift in the demand curve, indicating a higher quantity demanded at each price level.

Suppose a College Increases the Wages Paid to Student Employees