Which of the following increases in labor demand is due to a change in the product demand?
A) Access to computers increases the productivity of mail order businesses, thus increasing the demand for their workers.
B) Tourism increases in popularity, increasing the demand for workers at tourist resorts.
C) A decrease in the price of trucks decreases the cost of transporting goods, thus increasing the demand for truckers.
D) A change in work rules increases output per worker in the auto industry, thus increasing the demand for autoworkers.

Question

Quizplus · Accepted Answer

When tourism increases in popularity, the demand for workers in tourist resorts also increases. This is an example of a change in product demand leading to an increase in the demand for labor. Option A is an example of technological change leading to an increase in the demand for labor, Option C is an example of a decrease in the cost of production leading to an increase in the demand for labor, and Option D is an example of a change in work rules increasing productivity, leading to an increase in the demand for labor.

Which of the Following Increases in Labor Demand Is Due