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Making cloth is a labor intensive process. An increase in the price of cloth Pc/Pf (food) is predicted to change wage how? A. Increase in wages

B. Decrease in wages
C. No change in wages
D. Unpredictable impact on wages

1 Answer

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Final answer:

An increase in the price of cloth is predicted to have an unpredictable impact on wages.

Step-by-step explanation:

An increase in the price of cloth (Pc/Pf) is predicted to have D. Unpredictable impact on wages.

The relationship between the price of cloth and wage changes depends on various factors such as productivity, demand for labor, and expectations of employers and workers.

If there is a sudden increase in the price of cloth, it could lead to either an increase or decrease in wages, depending on the specific circumstances and the overall economic conditions. Therefore, the impact on wages is unpredictable.

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