Answer to Question #230707 in Microeconomics for hamza

Question

If salaries of journalist go up then demand curve of newspaper will shift upward.

truth or false with explanation

Answer 1

False. The increase in the salaries of the journalists will increase the cost of producing newspapers. This will reduce the market supply and shift the curve to the left. The leftward shift in the curve will increase the price of newspapers and the quantity demanded will reduce in the market as a result.