Final answer:
Lawn maintenance companies become more willing to hire workers as labor costs decline, allowing them to lower service prices and be more competitive. This reflects basic supply and demand principles, which are also applicable in agriculture, as seen with farmers choosing which crops to plant based on market prices.
Step-by-step explanation:
As the price of a service, such as lawn maintenance, declines, companies in this sector become more willing and able to hire workers because they can provide the service at a more competitive rate. This is explained by the basic principles of supply and demand. When the cost to the company for hiring labor decreases, the company can lower the price at which it sells its services. This can also attract more customers due to the lower price point. Conversely, if their services become too expensive, other companies may enter the market, providing similar services at lower costs, which could lead to a decrease in the original company's market share.
In agriculture, such as the market for wheat, the same principles apply. Farmers will grow crops that they believe will yield the most profit. If the price of wheat is too low, they might opt to plant corn instead, which could be more profitable. They will switch back to wheat only when the prices rise to a level at which growing wheat is financially beneficial compared to other crops.