An increase in the demand for chicken is predicted to ______ the real wage and ______ employment of unskilled workers in a poultry processing plant.

Question

Quizplus · Accepted Answer

If there is more demand for chicken, we would expect the price of chicken to increase too and the production of chicken becomes more profitable. As a consequence, chicken producers will be more inclined to hire workers and there will be more demand for poultry workers (demand shifts right). As a result, wages and employment will increase.

An Increase in the Demand for Chicken Is Predicted to ______