Question

An increase in the demand for autoworkers may come about because of a(n): Select one_______.

a. decrease in the productivity of autoworkers.
b. decrease in the price of cars.
c. increase in the price of cars.
d. decrease in the supply of other factors that autoworkers use in production.

Answer 1

c. increase in the price of cars.

Step-by-step explanation:

If there's a rise in the price of cars, it would encourage more producers to enter into the car production industry because of its profitability.

If more producers enter the market, more autoworkers would be demanded for.

This is in line with the law of supply which says, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.