What will happen to the demand curve for tea workers if the price of tea increases, assuming all else equal? A. There will be a right shift of the demand curve for tea workers. B. There will be a left shift of the demand curve for tea workers. C. There will be an upward movement along the demand curve for tea workers. D. There will be a downward movement along the demand curve for tea workers.

Question

Philip Gray

Business

14 May, 14:37

What will happen to the demand curve for tea workers if the price of tea increases, assuming all else equal? A. There will be a right shift of the demand curve for tea workers. B. There will be a left shift of the demand curve for tea workers. C. There will be an upward movement along the demand curve for tea workers. D. There will be a downward movement along the demand curve for tea workers.

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Answers (1)

Know the Answer?

Amina · Answer 1

Option (A) is correct.

Explanation:

If there is an increase in the price of tea then as a result this will increase the demand for tea workers. As the producers of tea wants to increase their output level so that they can earn higher profits in terms of higher tea prices. Hence, there is a need to employ more tea workers for increasing the production volume which will increase the demand for workers and shift the demand curve of tea workers rightwards.