Question

Consider the market for workers in the us furniture industry. refulations in the furniture production industry incerase production costs. this would

Answer 1

The DEMAND for US FURNITURE WORKERS will FALL

Step-by-step explanation:

The demand for factors of production (including labour as a factor) is DERIVED DEMAND. They are demanded to produce the good / service which will further satisfy producers (through profit) , consumers (through utility) .

Regulaton in Furniture production industry increasing its cost of production , wil reduce the supply of furniture (inverse relatonship between supply and cost of production) . This supply reduction by producers will make them demand furniture labour less as a factor of production . Because , as mentioned earlier - the labour doesnt have any slf intrinsic value to be demanded , has derived demand for producing the good (whose supply , production has now decreased due to increase in cost - in this case)