Benny employs people to sell candy bars at intersections.Assume that Benny can obtain candy bars to sell for no cost.The marginal product of the last worker Benny hired is 20 candy bars per hour.Benny pays $7 per worker per hour and sells the candy bars for $1 each.If the price of candy bars rises to $2,then the:

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When the price of candy bars rises, the profit margin on each candy bar also increases. This means that Benny can afford to pay his workers more while still earning a profit. As a result, the demand for labour increases as Benny seeks to hire more workers to take advantage of the increased profit margin.

Benny Employs People to Sell Candy Bars at Intersections