Suppose that an industrial accident at a factory destroys a significant number of high-speed blenders that bartenders use to mix frozen drinks. What will happen in the labor market for bartenders?
A)Both wages and employment will increase.
B)Both wages and employment will decrease.
C)Wages will increase, and employment will decrease.
D)Wages will decrease, and employment will increase.

Question

Quizplus · Accepted Answer

The destruction of high-speed blenders reduces the capacity to serve customers efficiently, likely decreasing demand for bartenders as fewer frozen drinks can be made. This would lead to both lower wages and employment in the bartender labor market.

Suppose That an Industrial Accident at a Factory Destroys a Significant