If the demand for alarm clocks decreases,the effect on the alarm clock job market will be to
A)Increase the demand for labor and increase equilibrium wages.
B)Reduce the supply of labor and increase equilibrium wages.
C)Decrease the demand for labor and reduce equilibrium wages.
D)Have no impact on equilibrium wages.

Question

Quizplus · Accepted Answer

If the demand for alarm clocks decreases, it means that the production of alarm clocks will decrease as well. This will lead to a decrease in the demand for labor in the alarm clock industry as fewer workers will be needed to produce the declining quantity of alarm clocks. As a result, the equilibrium wages in this job market will decrease.

If the Demand for Alarm Clocks Decreases,the Effect on the Alarm