Multiple Choice
Benny employs people to sell candy bars at intersections. 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:
A) demand for labor increases.
B) demand for labor decreases.
C) quantity demanded of labor increases, but the demand for labor curve does not shift.
D) quantity demanded of labor decreases, but the demand for labor curve does not shift.
Correct Answer:
Verified
Correct Answer:
Verified
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