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Question
An increase in demand for DVD machines occurs. Which of the following statements is true for individual firms that produce DVD machines?
A) The price of DVD machines will decrease leading to an increase in the demand for labor by the firm.
B) The price of DVD machines will increase leading to an increase in the demand for labor by the firm.
C) The price of DVD machines will increase leading to a decrease in demand by customers leading to a decrease in the demand for labor by the firm.
D) A change in demand at the industry level does not influence an individual firmʹs demand curve for labor.
Answer
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