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Choose all the scenarios below that would cause an increase in demand for labor in producing iPhones.

A. Trade barriers have made it difficult to sell the iPhone abroad, decreasing the number sold.

B. A new Samsung phone has been released that provides many more features than an iPhone and is much less expensive.

C. Higher unemployment in the United States means that wages across all sectors of the economy decrease.

D. New regulations on the production of iPhones require safety checks to be performed daily by all employees, which takes 30 minutes each day to complete.

E. Due to the popularity of social apps with teenagers and young adults, iPhones are in higher demand than ever.

F. The new iPhone model is so popular that the retail price has been driven up by 10%.

1 Answer

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Final answer:

Scenarios C, D, E, and F would cause an increase in demand for labor in producing iPhones. Scenarios C and D create conditions for lower labor costs and more work required, respectively, while scenarios E and F correlate with increased product demand, necessitating more labor.

Step-by-step explanation:

To answer the question regarding scenarios that would cause an increase in demand for labor in producing iPhones, we need to look for factors that increase production needs. The scenarios are:

  • C. Higher unemployment in the United States means that wages across all sectors of the economy decrease. This could reduce the cost of labor and allow companies to hire more workers if demand for their product exists.
  • D. New regulations on the production of iPhones require safety checks to be performed daily by all employees. This new requirement means more labor time is needed, thus increasing the demand for labor.
  • E. Due to the popularity of social apps with teenagers and young adults, iPhones are in higher demand than ever. This directly increases the need for more labor to meet the demand for iPhones.
  • F. The new iPhone model is so popular that the retail price has been driven up by 10%. This indicates a high demand for the product, which would typically increase the labor demand to produce more units.

Scenarios A and B would not cause an increase in demand for labor. A decreases demand due to trade barriers, and B suggests a competitor's product is diminishing iPhone's market share.

User Abraham Jagadeesh
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