Wages for Workers Producing IPods and Similar Products Will Rise

question 141

Multiple Choice

Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for iPods. You predict that the major effect will be that the

• A) demand curve for an iPod will shift rightward.
• B) demand curve for an iPod will shift leftward.
• C) supply curve for an iPod will shift leftward.
• D) supply curve for an iPod will shift rightward.

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Definitions:

Limited Risk

Exposure to a relatively small possibility of loss or less severe consequences in an investment or business activity.

Assets

Resources owned by a business or individual that have economic value and can provide future benefits.

Supplies

Items used in the operation of a business or part of inventory not yet sold.

Equipment

Tangible property owned by a business used in its operations over an extended period.