In the textile industry,industrial robots and assembly line workers are gross substitutes.Accordingly,the drop in the price of robots has:
A)decreased the demand for robots
B)increased the demand for assembly line workers
C)decreased the demand for assembly line workers
D)increased assembly line workers' wages

Question

Quizplus · Accepted Answer

In this scenario, industrial robots and assembly line workers are gross substitutes, meaning that they can easily replace each other in the production process. A drop in the price of robots would make them relatively cheaper compared to assembly line workers, leading to a decrease in the demand for assembly line workers. As a result, choice C, "decreased the demand for assembly line workers," is the best choice.

In the Textile Industry,industrial Robots and Assembly Line Workers Are