If the Selling Price of a Bushel of Cranberries Rises

question 164

Multiple Choice

If the selling price of a bushel of cranberries rises, we would expect the demand for labor in the cranberry industry to

• A)increase.
• B)decrease.
• C)be unchanged.
• D)increase by less than the corresponding decrease in supply.

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Definitions:

Workers Hired

The number of individuals employed by a company or organization for the purpose of performing specific jobs.

Product Market

A platform where end products or services are made available to individuals, businesses, and governmental agencies.

Monopsonist

A market condition where there is only one buyer facing many sellers, often leading to lower prices for suppliers.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital, holding all other factors constant.