Use the following to answer question(s): The Market for Music Downloads

-(Exhibit: The Market for Music Downloads) An increase in the wage rate paid to web site technical support employees would result in a change illustrated by the move from:

Question

Use the following to answer question(s): The Market for Music Downloads
 
-(Exhibit: The Market for Music Downloads) An increase in the wage rate paid to web site technical support employees would result in a change illustrated by the move from:

Quizplus · Accepted Answer

An increase in the wage rate paid to web site technical support employees would increase the production costs for companies that sell music downloads. This would decrease the supply of music downloads because it would become more expensive to produce and offer these downloads. In supply and demand analysis, a decrease in supply is shown by a leftward shift of the supply curve, which is represented by the move from point h to point i in a supply and demand diagram.

Use the Following to Answer Question(s): the Market for Music