Benny Employs People to Sell Candy Bars at Intersections

question 161

Multiple Choice

Benny employs people to sell candy bars at intersections.Assume that Benny can obtain candy bars to sell for no cost.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 labour increases.
• B) demand for labour decreases.
• C) quantity demanded of labour increases,but the demand for labour curve does not shift.
• D) quantity demanded of labour decreases,but the demand for labour curve does not shift.

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