Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work?

a. the supply of goods rises

b. the demand for goods falls

c. the demand for goods rises

d. the supply of goods falls

Question

Business

Patrick Stevens

27 February, 01:30

Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work?

a. the supply of goods rises

b. the demand for goods falls

c. the demand for goods rises

d. the supply of goods falls

+1

Answers (2)

Know the Answer?

Peter Sullivan · Answer 1

Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow."

This works because A) the supply of goods rises.

Serena Bullock · Answer 2

If the price of labor falls, the supply of goods rises, and the prices of those goods fall.

The right answer is: a. the supply of goods rises

Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work?a. the supply of goods risesb. the demand for goods fallsc. the demand for goods risesd. the supply of goods falls

Labor is a resource that is necessary to produce many goods. "If the price of labor falls," says the economist, "the prices of goods will soon follow." How does this work?

a. the supply of goods rises

b. the demand for goods falls

c. the demand for goods rises

d. the supply of goods falls