Which is an example of a change in the price of another resource that decreases labor demand?
A) A decline in the demand for computers in Europe reduces the demand for workers in the domestic computer industry.
B) The rise of hair salons for both men and women reduces the demand for barbers.
C) A decrease in the educational skills of manufacturing workers decreases the demand for such workers.
D) An increase in the price of chemical equipment increases the cost of producing fertilizer,thus decreasing the demand for workers who make fertilizer.

Question

Quizplus · Accepted Answer

An increase in the price of chemical equipment increases the cost of producing fertilizer,thus decreasing the demand for workers who make fertilizer. This is an example of a change in the price of another resource, in this case, chemical equipment, that decreases the demand for labor in the fertilizer industry.

Which Is an Example of a Change in the Price