Due to the recent growth in the economy in the Wonderland area, many companies i

Question

Due to the recent growth in the economy in the Wonderland area, many companies in this area are seeking expansions in their businesses. As a result, a large increase in the recruiting activities of the companies in this area is expected for the next five years. What would happen to the pay of recruiting specialists in this area? Assume that the number of recruiting specialists in this area will remain the same.

1) The demand for recruiting specialists will increase, 2) shifts the demand curve to the left, 3) and the pay level of recruiting specialists will increase.

1) The demand for recruiting specialists will increase, 2) shifts the demand curve to the right, 3) and the pay level of recruiting specialists will increase.

1) The demand for recruiting specialists will increase, 2) shifts the demand curve to the left, 3) and the pay level of recruiting specialists will decrease.

1) The demand for recruiting specialists will increase, 2) shifts the demand curve to the right, 3) and the pay level of recruiting specialists will decrease.

Explanation / Answer

Since supply is same, there shall be increase in demand. Increase in demand leads to demand curve shifting to left. This will lead to pay increase of recruiting specialists.

First option is correct

second option is wrong because demand curve shifts to left, not right

Third option is wrong because pay level shall increase

Fourth option is wrong because pay level shall increase

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.