Question

Which of the following scenarios could lower a firm’s demand for labor?

a. Rex invests in new computer software that will automate his bookkeeping.
b. Calvin’s bookstore is located near a college campus. The school has just started and many students are returning to the area.
c. Amy must pay more money to obtain the wood needed to construct chairs at her factory.
d. James operates a restaurant in a seaside tourist town. It is winter and all the tourists have left.
e. Katie owns a coffee shop that used to have to compete with a nearby café. The café recently went out of business.

Answer 1

Answer: Option A, C, D, and E

Step-by-step explanation:

From the question given all options except option B are factors that can lead to reduction in Labour requirement of a business organization.

Option B involves students returning back to school which would lead to an increase in sales at the bookshop, this would lead to an increase in required Labour needed to man the bookshop.

The other options in the question are signs of struggling businesses which would need to lay off workers.