Question

Jordan's Photography Studio pays its workers $60 per day and sells poster-size prints for $10 each. Suppose that, during the holiday season, the price of poster-size prints increases to $12 due to a shift in the demand for the product. What happens?
A. The demand for labor increases.
B. The demand for labor decreases.
C. The quantity demanded of labor increases, but the labor demand curve does not shift.
D. The quantity demanded of labor decreases, but the labor demand curve does not shift.

Answer 1

As a result of the shift in demand taking the price up to $12, A. The demand for labor increases.

What happens when prices rise?

When prices of a good or service rise, the producers will want to take advantage of that to make more profit by producing more of that good.

In this case, Jordan's Photography Studio will therefore hire more people to produce more posters which means that there will be a rise in demand for labor.

In conclusion, option A is correct.

Find out more on labor demand shifts at https://brainly.com/question/4389927.