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 for student employees increases their disposable income, leading to a higher demand for goods such as school sweatshirts, thus shifting the demand curve to the right.

Suppose a College Increases the Wages Paid to Student Employees