Question

Which scenario best explains how changes in supply and demand affect changes in labor? (1 point)

Juanita hires seasonal workers for her gift wrapping business, but this season demand for wrapping has decreased. Despite this, Juanita
hires her usual four people.
The Cup Cakery begins supplying cupcakes to six more cafes in June. Kartik, the owner, refuses to hire any more bakers despite the change
in supply
Jin's goat farm has a decrease in customers during the summer, but Jin keeps his four employees on the payroll despite the change in
demand
The Doggie Spaw gets 15 new customers each week, so the owner hires two more dog groomers to meet the change in demand

Answer 1

The scenario that best explains how changes in supply and demand affect changes in labor is when the Doggie Spaw hires two more dog groomers to meet the increase in demand.

Step-by-step explanation:

The scenario that best explains how changes in supply and demand affect changes in labor is: The Doggie Spaw gets 15 new customers each week, so the owner hires two more dog groomers to meet the change in demand. This demonstrates the concept of increased demand leading to an increase in labor.

In the other scenarios:

• Juanita hires her usual four people despite a decrease in demand for wrapping. This does not reflect any change in labor due to supply and demand.
• The Cup Cakery supplies cupcakes to more cafes, but the owner refuses to hire more bakers, showing that changes in supply do not always result in changes in labor.
• Jin's goat farm has a decrease in customers, but he keeps his four employees. This example does not reflect changes in labor due to supply and demand.

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